Student

Summary of
Competing on Resources:
Strategy in the 1990s

by David J. collins and Cynthia A. Montgomery


This article looks at corporations strategic advantages based on their resources. These resources derriere be classified into:
Core competencies and capabilities, including intangibles such as stag name or know-how and physical resources such as willpower of necessary hardware or manufacturing capability.
Organizational capabilities that are embed in a companys routines, processes and culture. An example of this is the Japanese automobile companies.

The article goes on to show that resources can non be tryd in isolation because their valuate is determined by an interplay with market forces. A resource that is valuable in a limited industry or at a particular judgment of conviction might not have the same value in a different industry or time period.

The article identifies qualifications for resources as a basis for an effective strategy. The avocation are market samples of a resources value:
1. The test of put on: Is the resource hard to copy?
2. The test of durability: How quick does this resource depreciate?
3. The test of appropriability: Who captures the value that the resource creates?
4. The test of substitutability: Can a unique resource be trumped by a different resource?
5.



The test of combative superiority: Whose resource is really better?

The article goes on in explaining the strategic implications of the results of these tests and what should be done:
Managers should build their strategies on the resources that meet the five tests above.
Because resources depreciate continuous investment is required.
Companies must upgrade their resources.
Managers must leverage their resources.

Other general shrink away messages:
Looking at the resources gives the firm a induce strategy and identifies their competitive advantages that might otherwise have been overlooked.
Managers should evaluate resources relative...If you want to get a full essay, order it on our website: Orderessay



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