Strategy:
Contemporary Business Examples
Benefitting from “RBV” Analysis
Wayne Smith, Ph.D.
[email protected]
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.
• Within the RBV, we classify resources (assets) into “Tangible” and
“Intangible”.
• Tangible
–
–
–
–
Financial
Physical
Technological
Organizational
• Intangible
– Human
– Innovation and Creativity
– Reputation
RBV Analysis
(usually, rate/compare to competition)
Tangible
Marketable
Products and
Operational
Processes
Fin
Phy
Tech
Intangible
Org
Human
Innov
Rep
…
…
…
3
Tangible:
Financial
RBV - “VRIO” Analysis
• Within the RBV, we can 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
(usually, rate/compare to expectations)
Marketable
Products and
Operational
Processes
Value?
Rarity?
Imitability?
Organization?
…
…
…
7
Tangible:
Physical
Tangible:
Technological
Tangible:
Organizational
Intangible:
Human
Intangible:
Innovation and Creativity
Intangible:
Reputation
Value
Rarity
Imitability
Organization