The document discusses the Resource Based View (RBV) approach to competitive advantage. The RBV states that a company's internal resources are more important than external factors in determining competitive advantage. Resources include capital, equipment, employee skills, and brands, while capabilities are the ability of resources to perform tasks. There are three categories of resources: physical, human, and organizational. According to RBV, competitive resources and capabilities should be rare, difficult to imitate, and have no substitutes.

1. Ch 4-1
Resource Based View (RBV)
Approach to Competitive Advantage
Internal resources are more important
than external factors

2. Resource Based View
 A company is positioned to succeed if it has a
competitively valuable complement of
resources at its command
Ch 4-2

3. Resource Based View
 Resources : are inputs into the production
process( capital, equipment , skills of
employees, patents and brands
 Capabilities: Capacity for a team of resources
to perform some task or activity. They
constitute the main source of competitive
advantage
Ch 4-3

4. Ch 4-4
Resource Based View (RBV)
Three All-Encompassing Categories
1. Physical resources
2. Human resources
3. Organizational resources

5. RBV
 Physical Resources: Plant and equipment,
location, raw materials, machines
 Human Resources: Employees, training,
experience, intelligence, skills and
capabilities
 Organizational Resources : Firm structure,
planning processes, information systems,
patents, copyrights, databases
Ch 4-5

6. Ch 4-6
Resource Based View (RBV)
Empirical Indicators
 Rare
 Hard to imitate
 Not easily substitutable