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There are numerous approaches to assessing the value of an organization; however, the resource-based view allows for the most accurate and comprehensive analysis of the key opportunities that an organization can pursue in the selected market. By offering essentially an analysis of the key components of a companys potential competitive advantage, a resource-based view offers a chance for an organization to minimize its costs and invest in the areas that will most likely lead to a long-term improvement.
The integration of a resource-based view into the organizational setting brings multiple opportunities for developing a strong and robust competitive advantage. Specifically, the broad array of tools that the specified process requires applying offers a comprehensive and meticulous assessment of the companys core assets, as well as the nuances of the target environment in which a company will operate. Namely, applying the resource-based lens to a companys performance implies including the tools for evaluating external and internal factors shaping its performance to locate the firms strengths and weaknesses. Therefore, frameworks such as SWOT, PESTEL, Porters Five Forces, and VRIO are integrated into the assessment (Bruijl & Gerard, 2018). Since the specified tools provide a nuanced assessment of the target market, the company characteristics, and the related issues, opportunities for entering the market and establishing a presence in it are identified.
Furthermore, incorporating the resource-based view allows an organization to explore options linked to talent management, therefore, creating a team of experts with an excellent performance rate. The introduction of the specific perspective helps create a framework for active development and continuous growth within an organization. Furthermore, the specified approach to managing a companys performance e and building a competitive advantage incites an innovation-driven approach due to its focus on incremental improvement. Therefore, allowing an organization not only to adjust to rapid changes in market trends, but also actively utilize them to maximize the opportunities linked to the companys strengths while reducing the adverse effects of its weaknesses (Barney, 1991). Moreover, the proposed tools help build a long-term framework geared toward innovation and active promotion of change within the organization. As a result, a company can remain flexible and select the resources that allow for the best outcome and the most effective implementation of the set goals. Overall, the application of the resource-based framework should eb seen as the extension of the strategic management approach due to the focus on long-term goals and the opportunity to identify core trends and the strategies for the company to stay relevant.
Admittedly, the resource-based view is not devoid of its own issues. For instance, the specified approach limits the company range of opportunities to the definition of a resource that it applies to its corporate context. For instance, if an organization fails to recognize its staff members as a crucial resource, investing in the employees professional development becomes impossible (Wernerfelt, 1984). Therefore, the specified approach has its problems as the means of building a competitive advantage.
Due to the emphasis on the corporate potential within the target market and the opportunity to examine the companys characteristics that will allow building a strong and sustainable competitive advantage, a resource-based view should be considered a vital addition to the range of corporate strategies. The specified concept of building a competitive advantage helps determining the core strengths of an organization and ensure that the selected advantage will serve as a major tool for building a market presence in the long run. Thus, the resource-based view must be seen as a viable framework for maintaining a strong market presence.
References
Barney, J. B. (1991). Firm Resources and sustained competitive advantage. Advances in Strategic Management, 203227.
Bruijl, D., & Gerard, H. T. (2018). The relevance of Porters five forces in todays innovative and changing business environment. SSRI Electronic Journal, 1, 1-6.
Wernerfelt, B. (1984) The resource-based theory of the firm. Strategic Management Journal, 5, 171-180.
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