Framework: Resource and capability analysis (RBV)
Core Question: How can I leverage my resources to achieve a competitive advantage?
Key Application Steps:
For each resource you possess, examine its effect on the firms’ value drivers and profit and loss statement
Consider whether each resource satisfies the key conditions (e.g., valuable, rare, inimitable, non-substitutable)
Ensure that your basis for competition exploits the resources that satisfy these criteria
Ensure that you are upgrading your capabilities for future competitive battles (balance exploration and exploitation)
Comparisons with other concepts and frameworks:
- 5 Forces – Rather than chasing opportunities, perhaps in unrelated businesses, be the “best you that you can be!” Exploit your core competence and avoid competing on the basis of weaknesses.
Illustrative Decision Contexts:
Should I venture into a new industry X or country Y?
Should I internalize manufacturing, R&D, or some other activity, or outsource it?
What makes for a good acquisition target or alliance partner?
Real world example/HBR Case:
- Marks and Spencer
