How does the Resource-Based View of the Firm provide a superior means of evaluating a company’s competitive advantage?
How does the Resource-Based View of the Firm provide a superior means of evaluating a company’s competitive advantage?
In a firm, the asset based approach use to plan an important role as the organization’s game changer. This method is also considered as the major method for this purpose in an organization. The assets are advantages for the organization and they use to work like the materials. These are the assets which are used in order to make the goods or the services and also involve in the administration of the deals with clients or suppliers. These deals can be of different types but the assets use to play an important role in this entire scenario. The assets of organization use to play an important role in maintaining the goodwill of the organization and also fulfill all of the commitments of the organization. These assets or resources can be tangible or intangible. For example the organization Apple Inc. has very good customer base and the customers believe in the products of Apple Inc. this is the goodwill of the organization which have maintained their customer base and has also provided them a lot of competitive advantages in the industry. These resources use to play a role of game changer in the organization. On the other side if an organization purchases cheap products from the suppliers and produce a low price product and gets good competitive advantage in the industry. In this case we can say that the organization has good repute and goodwill which have made such good relation with the supplier. The organization can also analyze their assets and know about the capacity of the assets and the original outcome of them. We can know this by analyzing about the customer satisfaction, the benefits to the organization by using assets and the different opportunities from them.