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: -Rare. A resource is rare simply if it is not widely possessed by other competitors. Of all of the VRIO criteria this is probably the easiest to judge. For example, Coke’s brand name is valuable but most of Coke’s competitors (Pepsi, 7Up, RC) also have widely recognized brand names, making it not that rare.

Detailed explanation-3: -Conclusion: The statement is false. For a resource to be valuable, it need not be rare or hard to imitate, or difficult to substitute.

Detailed explanation-4: -Rare. A resource that is uncommon and not possessed by most organizations is rare. When a resource is both valuable and rare, you have a resource that gives you a competitive advantage. The competitive advantage achieved from a resource that is both valuable and rare is usually short lived though.