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  • Essay / Firm Resources and Sustained Competitive Advantage

    Firm Resources and Sustained Competitive Advantage Understanding the sources of sustained competitive advantage is extremely crucial to surviving in the industry and this has become a major area of ​​research in the field of strategic management. This article correlates the relationship between firm resources and sustainable competitive advantage, based on the assumption that strategic resources are distributed across the firm. The following framework (SWOT analysis) is designed to model the structure of this research, showing how a company can maintain its competitive advantage by implementing strategies that: exploit strengths, respond to opportunities, neutralize threats, and avoid weaknesses. This framework is based on two assumptions: Firms in an industry control the same strategically relevant resources and pursue the same strategies, making them identical to each other. . Second, if resource diversity grows in the industry, it will be short-lived because the existing resources used by firms to implement their strategies are highly mobile. This article defines some key concepts and analyzes the role of firms' individual and immobile resources in resource creation. sustainable competitive advantages. Company resources: all assets, capabilities, organizational processes, company attributes, etc. which are controlled by companies, can be used to implement strategies more effectively and efficiently. These company resources can be classified into three important categories: physical capital, for example technology and infrastructure; Human capital – for example, training, experience, skills of workers and managers; and Organizational capital – for example, the formal hierarchical structure of a company, formal and informal planning, etc. These resources can be useful in specific conditions, allowing a...... middle of paper ......advantage. Few examples applying this framework have been presented in this article: Strategic planning, information processing system and positive reputation. Limitations and Critical Reflections: The article was written almost 24 years ago and many methods and conventions, particularly regarding technology, have changed over the years. Most businesses are extremely dependent on technology, so information processing system is crucial in today's world for SCA. Additionally, if meeting all four criteria is important to SCA, how have companies like Coca Cola and PepsiCo, Adidas and Puma survived over the decade? years and maintain their profitability? In today's world, isn't it difficult to find resources that meet all four SCA criteria? Do sources have to be heterogeneous and immobile, or can they now be homogeneous and mobile resources ??