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Strategy:

Wayne Smith, Ph.D.wayne.smith@csun.edu

Department of Management

Contemporary Business Examples Benefitting from “RBV” Analysis

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)

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Tangible Intangible

Marketable Products andOperational Processes

Fin Phy Tech Org Human Innov Rep

…

…

…

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)

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Marketable Products

andOperational Processes

Value? Rarity? Imitability? Organization?

…

…

…

Tangible:Physical

Tangible:Technological

Tangible:Organizational

Intangible:Human

Intangible:Innovation and Creativity

Intangible:Reputation

Value

Rarity

Imitability

Organization