BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Resource-based theory suggests that resources that are valuable, rare, difficult to imitate, and nonsubstitutable best position a firm for long-term success. These strategic resources can provide the foundation to develop firm capabilities that can lead to superior performance over time.

Detailed explanation-2: -For a resource to be valuable, it must be either rare, hard to imitate, or not easily substitutable. Successful strategy formulation generally rests upon the ability of an organization to sell some product or service.

Detailed explanation-3: -Strategic resources that are valuable or rare are valuable simply due to the relatively high cost of acquiring them (e.g., an airplane) or scarcity (e.g., diamonds). Competitors have a hard time replicating resources that are difficult to imitate .

Detailed explanation-4: -A resource is inimitable and non-substitutable if it is difficult for another firm to acquire it or to substitute something else in its place. A valuable and rare resource or capability will grant a competitive advantage as long as other firms do not gain subsequent possession of the resource or a close substitute.

Detailed explanation-5: -DIFFICULT-TO-IMITATE resources often involve legally protected intellectual property such as trademarks, patents, or copyrights. Other difficult-to-imitate resources, such as brand names, usually need time to develop fully.