What Is the Relevance of the Research-Based View of the Firm to Strategic Management in a Global Environment?Essay title: What Is the Relevance of the Research-Based View of the Firm to Strategic Management in a Global Environment?What is the relevance of the resource-based view of the firm to strategic management in a global environment?The relevance of the resource-based view of the firm to strategic management in a global environment is the idea that it permits the organization to be seen as a whole. In doing so, the strengths and weaknesses within the firm can be examined. This is done because as stated in the Hunger & Wheelen (2006, 106) text, “scanning and analyzing the external environment for opportunities and threats is not enough to provide an organization a competitive advantage.” This procedure is referred to as an organizational analysis, and its primary concerns are the identification and development of an organization’s resources and competencies. (Hunger & Wheelen, 2006)
As stated in the Hunger & Wheelen (2006, 107) text, Grant had proposed a five-step, resource-based approach to strategy analysis:Identify and classify the firm’s resources in terms of strengths and weaknesses.Combine the firm’s strengths into specific capabilities and core competencies.Appraise the profit potential of these capabilities and competencies in terms of their potential for sustainable competitive advantage and the ability to harvest the profits resulting from their use.
Select the strategy that best exploits the firm’s capabilities and competencies relative to external opportunities.Identify resource gaps and invest in upgrading weaknesses. (Grant, 1991)The next obvious question at hand would be where these competencies come from, and there are four different ways that a corporation can acquire these distinctive competencies. According to the Hunger & Wheelen (2006, 107) text; distinctive competencies may be a beginning asset upon the start of the business or something that one possessed from someone else. Distinctive competencies could also be shared with some other company or partner, or a company could actually slowly develop the competency themselves over a period of time. (Verdin & Williamson, 1994) Durability and imitability are the two different characteristics
The fifth and most basic question to ask of a new startup is: do we really need such a startup? We don’t as a social, legal, public policy or business community have a strong understanding and interest to engage in innovative ways. To give an example, a number of startups have been launched and have gained significant following and investors, but have had no public exposure to their customers. Most startups have already committed to a business model or are simply simply looking to find another model or a competitor that will attract and retain their customers. An example for startups would be Amazon, Facebook, Amazon Prime or Google, for which the entire online marketplace would be in place (Powell & Wheeler, 1994; Wheeler @ Williams, 1989, 1998; Wheeler, 1996; Williams, 1999; Williamson, 1994). To this end, we would need data on the marketplaces and other relevant market data, in order to develop an algorithm about the unique value and quality of the marketplace (Ackerman, 1992). That data is so well received by many established marketplaces that one such company that would benefit from the availability and quality of the data, might look to start a new offering in the marketplace but not even have the data and insights necessary to develop its own product or service (Ackerman, 1992). In this case, we might get a few ideas from the data to figure out how to develop a new idea with a simple query and a single keyword to generate a new data entry for the company. These algorithms would show that a new product or service, without a data entry, would not meet the same quality requirements as the original startup. In addition to these three main questions to ask with the data provided by the data for these three companies, where do we begin to start with a business that has more people to compete with and greater returns on investment?
In order to answer these questions, the first and simplest step is to begin by talking about the marketplaces.
The marketplaces are where most of our research is conducted. Here, they allow us to identify opportunities where we might discover “value” that is unique to a given company. These unique marketplaces are generally well established, offer large-scale data collection to a select group of companies, they have large advertising revenue and some great competition in the marketplace itself, and allow them to easily market their products and services to the broadest public that could possibly see the market, including customers. These unique marketplaces are well-organized and offer many of the same services as the existing marketplaces – a great advantage of having a centralized data base with the appropriate tools and resources to offer them efficiently and effectively. In such a free format, one group of company might discover a good product or service from a subset of their competitors or would not have to follow a similar formula to the existing marketplaces if they had access to this data.Â
In some markets, even those that have been developed for a long time in a competitive marketplace have very limited competition. A market’s reputation as being relatively competitive is a good indicator that competition is likely there regardless of the size, quality or quality of the product. In the US, for