Strategy Contemporary Business Examples Benefitting from RBV Analysis

Strategy: Contemporary Business Examples Benefitting from “RBV” Analysis Wayne Smith, Ph. D. wayne. smith@csun. edu Department of Management 1

RBV – Tangible and Intangible Resources • In general, the Resource-Based View (RBV) helps with understanding the internal organizational landscape. • Chief Assumption: An organization’s managers drive success in the marketplace. • This is sometimes referred to as “intrapreneurship”. • Organizational Example. . . • Tangible – – Financial Physical Technological Organizational • Intangible – Human – Innovation and Creativity – Reputation

RBV Analysis (compare as-is to desired-future) Tangible Marketable Products and Operational Fin Phy Tech Intangible Org Human Innov Rep Processes … … … 3

“VRIO” Analysis • Often, successful entrepreneurs use “VRIO” Analysis. • Value – Is the product or process particularly valuable in some way? • Rarity – Is the product or process particularly rare (i. e. , in few hands)? • Imitability – Is the product or process particularly hard to replicate? • Organization – Is there organizational capacity available to leverage the first three?

VRIO Analysis (compare to opportunities to expectations) Marketable Products and Operational Processes Value? Rarity? Imitability? Organization? … … … 6