Question

describe an organization using rbv framework. Elaborate in details please. Resource-based view

Answer 1

Ans:- Resource based view (RBV) framework talks about imporatnace of different resources of the company for its success. According to RBV framework it is much more easy to exploit the external opportunities from existing resouces rather than acquiring new resorces for every opportunity. Let us take an example of BMW car.

There are two knind of resources in a company that is tangible and intangible. For BMW the tangibel asstes are land, buinling, plant, machinery. These resources have little advantage as they can be acquired in little time.

Intangible asset talks about brand name, patent, trademark, intellectual propoerty etc. Intangible assets can't be easily acquired by any company as it is build over time. The brand name of BMW can't be acquired by any other automobile company.

The resorces should be heterogeneous and immobile. The heterogeneous resources are diiferent for BMW and different for TATA motors. The brand name of BMW can't be intimated by TATA motors. BMW sells it's products at much higher price than that of TATA motors based on its quality and brand image.

The immobile resorces talks about resources which can't be moved easily from one company to another. Intangible resources are typically immobile. The patent acquired by BMW can't be intimated by other comany.

Also if resources have VRIO (Value, rare, imitability, organisation) framework then it can provide competitive advantage to the company.

a). Value - The resouce should provide value to the customer. For example the unique design and asthetic appeal of BMW provide luxury value to the customers.

b). Rare:- The resorce should only be acquired by few companies. It is rare to achieve the safety and brand image of BMW by other companies.

c). Imitability:- The different models of BMW cars can't be easily imitated by other company.

d). These resorces should be organized to capture value for the company. For BMW it's plant, machinery, marketing, sales after sales service all are organised to provide superior value to customer and create competitive advantage.