India’s Demonetization Policy: Will it Work ?
Imagine one fine evening your nation’s top leader suddenly appeared on television to make an address. In this speech, he stated that the money which currently accounts for over 80% by value and 20% by volume of the entire money supply are suddenly going to be invalid i.e. worthless. They would cease to be legal […]
Exit Strategies In Credit Risk Management
Firms often give loans or extend credit over extended periods of time. The credit extended may continue for years and even decades. It is possible for the management of the company to change during this period. It is also possible for the cash flow position of the company to change during this period. Hence, it […]
Benefits of Human Capital Management
What is Human Capital Management? Human Capital management refers to the management of employees, hiring right employees, training them, upgrading their skills, utilizing their knowledge to the fullest, eventually benefitting the organization. Human management refers to managing employees for them to contribute effectively towards the organization. Let us go through the benefits of human capital […]
Digital Piracy and Intellectual Property Rights
The Problem of Digital Piracy In recent years, the corporate world has been wary of theft of intellectual property and digital piracy that is impacting their bottom lines and eroding their profits. To understand, how digital piracy impacts businesses, consider the case of Microsoft that comes out with a new version of its proprietary operating […]
Why is it Difficult to Raise Seed Funding?
In the previous article, we have already learned what seed funding is and the various sources from which it can be acquired. It is important to mention that theoretically seed funding can be obtained from various sources. However, in real life, it is remarkably hard to obtain. There are very few entrepreneurs who are able […]
The resource-based view (RBV) is a way of viewing the firm and in turn of approaching strategy. Fundamentally, this theory formulates the firm to be a bundle of resources. It is these resources and the way that they are combined, which make firms different from one another. It is considered as taking an inside-out approach while analysing the firm. This means that the starting point of the analysis is the internal environment of the organization.
Resources of the firm can include all assets, capabilities, organizational processes, firm attributes, information and knowledge. In short resources can be considered as inputs that facilitate the organization to perform its activities.
All resources that an organization has may not have strategic relevance. Only certain resources are capable of being an input to a value creating strategy which put the organization in a position of competitive advantage. An organization’s resource should have four attributes to provide the potential for competitive advantage. These form the VRIN characteristics.
The important features for a resource to be strategically important are as below
The VRIN characteristics mentioned above are individually necessary for the resources to be valuable.
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