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Types of Resources: Question?

OrganizaNonal CapabiliNes 3-10

Competencies or skills that a rm employs to Gillette combines several technologies to attain

unparalleled success in the wet shaving industry.
transform inputs to outputs, and capacity to This is an example of their
combine tangible and intangible resources to A. tangible resources.
abain desired end B. intangible resources.
9 Outstanding customer service C. organizational capabilities.
D. strong primary activities.
9 Excellent product development capabiliNes
9 InnovaNveness of products and services
9 Ability to hire, moNvate, and retain human
capital
9 10

Resource-based View1:
Abributes and Sustainable CompeNNve Is the resource VALUABLE?
Advantages:
Only value-adding resources can lead to
First, the resource must be valuable in the sense compeNNve advantage, whereas non-value-
that it exploits opportunities and/or neutralizes adding capabiliNes may lead to compeNNve
threats in the firms environment. disadvantage(eg, Motorola, IBM).
Second, it must be rare among the firms current
Enable rms to formulate and implement
and potential competitors.
strategies to improve eciency and eecNveness.
Third, the resource must be difficult for
competitors to imitate.
Fourth, the resource must have no strategically
equivalent substitutes.
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