Topic > Corporate Resources and Sustained Competitive Advantage

Corporate Resources and Sustained Competitive Advantage Understanding the sources of sustained competitive advantage is extremely crucial to surviving in the industry and this has become an important area of ​​research in the field of strategic management. This article relates the relationship between firm resources and sustained competitive advantage, based on the assumption that strategic resources are distributed throughout the firm. The following framework (SWOT analysis) is designed to shape the structure of this research, showing how a company can sustain its competitive advantage by implementing strategies that: Exploit strengths, respond to opportunities, neutralize threats and avoid weaknesses. This framework is based on two assumptions: firms within an industry control the same strategically relevant resources and pursue the same strategies, making them identical to each other. Second, if resource diversity develops in the industry, it will be short-lived as the existing resources used by companies to implement their strategies are highly mobile. This document defines some key concepts and analyzes the role of individual fixed corporate assets in creating sustained competitive advantages. Business resources: all resources, capabilities, organizational processes, business attributes, etc. which are controlled by companies, can be used to implement strategies more efficiently and effectively. These business resources can be classified into three important categories: Physical Capital – e.g. technologies, infrastructures; Human capital: for example training, experience, skills of workers and managers; and Organizational capital: for example a company's formal reporting structure, formal and informal planning, etc. These resources can be useful under specific conditions, thus allowing an...advantage of......half the card. Few of the examples of application of this framework have been shown in this paper: strategic planning, information processing system and positive reputation. Limitations and critical reflections: The document was written almost 24 years ago and many of the methods and conventions, especially regarding technology, have changed over the years. Most businesses are extremely dependent on technology, so information processing system is crucial in today's world for SCA. Furthermore, if having the four criteria is important to SCA, how do companies like Coca Cola and PepsiCo, Adidas and Puma, survive over the years? years and have maintained their profitability? In today's world, isn't it difficult to find resources that meet all four criteria for SCA? Sources must be heterogeneous and immobile, or they can be homogeneous and mobile resources now??