Competing On Resources Collis And Montgomery 2008 PdfBy Leala P. In and pdf 20.03.2021 at 07:30 5 min read
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This article provides a comprehensive review of RBT, including a contemporary definitional foundation for relevant terms and assumptions and a synthesis of empirical findings from marketing literature. This analysis also reveals some common pitfalls associated with prior research, offers tentative guidelines on how to improve the use of RBT in marketing, and suggests research directions to advance the theorization and empirical testing of RBT in the future. This is a preview of subscription content, access via your institution.
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What gives your company a competitive edge? Your strategically valuable resources -- the ones enabling your enterprise to perform activities better or more cheaply than rivals. These can be physical assets a prime location , intangible assets a strong brand , or capabilities a brilliant manufacturing process. For example, Japanese auto companies have consistently excelled through their capabilities in lean manufacturing. Strategically valuable resources have five characteristics, say Collis and Montgomery: 1 They're difficult for rivals to copy.
Competing on Resources (HBR Bestseller)
How do you create and sustain a profitable strategy? In practice, however, identifying and developing core competence too often becomes a feel-good exercise that no one fails. Where a company chooses to play will determine its profitability as much as its resources do. The authors spell out in clear managerial terms why some competitors are more profitable than others, how to put the idea of core competence into practice, and how to develop diversification strategies that make sense. To illustrate the power of resource-based strategies, the authors provide many examples of organizations—including Disney, Cooper, Sharp, and Newell—that have been able to use corporate resources to establish and maintain competitive advantage at the business-unit level and also to benefit from the attractiveness of the markets in which they compete. As recently as 10 years ago, we thought we knew most of what we needed to know about strategy.
Competing on Resources
How do you create and sustain a profitable strategy? Many approaches have focused managers' attention inward, urging them to build a unique set of corporate resources and capabilities. In practice, however, identifying and developing core competence too often becomes a feel-good exercise that no one fails. Collis and Montgomery, of Harvard Business School, explain how a company's resources drive its performance in a dynamic competitive environment, and they offer a framework that moves strategic thinking forward in two ways. The resource-based view of the firm comprises a pragmatic and rigorous set of market tests to determine whether a company's resources are truly valuable enough to serve as the basis for strategy and integrates that market view with earlier insights about competition and industry structure.
Strategic capability scales were adopted from DeSarbo and associates. A survey containing these scales was administered to attendees at a retail trade show in the USA. The survey — translated into Spanish — was distributed by mail and completed by retailers in Peru and retailers in Argentina. Links were assessed among strategic capabilities, generic business strategies, and performance in retail businesses in Argentina, Peru and the USA. Support was found for links between the focus strategy and both marketing and linking capabilities, between the differentiation strategy and technology capabilities, and between the cost leadership strategy and management capabilities. It utilized cluster analysis, assessed only retailers, and considered only three nations.
Harvard Business Review | July–August | goglc.org DAVID J. COLLIS AND. CYNTHIA A. MONTGOMERY Best of HBR Competing on Resources.
Resource-based theory in marketing
As recently as ten years ago, we thought we knew most of what we needed to know about strategy. Leading companies, such as General Electric, built large staffs that reflected growing confidence in the value of strategic planning. Strategy consulting boutiques expanded rapidly and achieved widespread recognition.
In the marketing technology industry the authors classify resource configurations generalists, specialists, innovators which group firms with distinctive competences on similar resource dimensions. The major findings are: some firms that are close together in strategy space vary in performance; some firms that are close together in strategy space belong to quite different resource configurations; firms that belong to the same resource configuration i. Furrer, O. Emerald Group Publishing Limited.
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