BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -According to the text, valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are resources. For a firm’s resources to provide sustainable competitive advantage they must be rare, imperfectly imitable, and nonsubstitutable.

Detailed explanation-2: -Sustainable competitive advantage occurs when a company consistently outperforms its competitors in the same industry or field. Most often, companies with this type of advantage create a value for their customers that’s superior when compared to other businesses.

Detailed explanation-3: -What are the Sources of Sustainable Competitive Advantage? The sustainable competitive advantage sources for any company include Brand Loyalty, Innovation, Proprietary Information Scale, Intellectual Property, Innovation, Network-effect.

Detailed explanation-4: -The idea here is that if a firm is to maintain sustainable competitive advantage, it must control a set of exploitable resources that have four critical characteristics. These resources must be (1) valuable, (2) rare, (3) imperfectly imitable (tough to imitate), and (4) nonsubstitutable.

Detailed explanation-5: -To lead to a sustainable competitive advantage, a resource or capability should be valuable, rare, inimitable (there are no substitutes), and possessed by the organization despite it being costly to imitate in terms of time or money or both. This VRIO framework is the foundation for internal analysis.