Question

Describe two (2) types of tangible resources/capabilities and two (2) types of intangible resources/capabilities. Assume you work for Phillips (a Dutch consumer electronics company – flat screen TVs, personal computers, MP3 players, audio equipment, DVDs, digital cameras, GPS systems, etc.). Pick the two (2) resources/capabilities you think would be most important to be successful in the consumer electronics business over the next five years. Fully explain your answer.

Answer 1

Tangible Resources/ capabilities are the Physical assets of a company that can be seen  and measured and help differentiate and build resources unique from others. Two tangible resources can be - Financial i.e the money to invest from own or borrowed funds and Physical i.e. the equipment ,the employees , etc.

Intangible Resources/capabilities are the non-physical assets which are important and necessary for an organization but they can not be seen. Two intangible resources can be - Human Resources i.e the skills and knowledge of the employees , Innovative capabilities of the company , Brand name, Reputation of the company.

An organisation needs to have an optimum mix of tangible and non-tangible resources in order to achieve core-competency over its competitors. Two resources which would be most important for Phillips to be successful in the consumer electronics business over the next five years are Technological advancement along with the quality . As the years pass different innovations are coming up making the world digitalized as well as automatic specially when it comes to electronics industry like the innovation of smart TV, laptops over MP3 players or DVDs providing the customers with more comfort and ease as well as satisfaction.And in the coming future it is more about the quality and the benefits of the product rather than the price. Customers put their money in Quality. So if the company keeps up the pace with its environment on technological front and provides the customers with products like smart phones, laptops, TV that help fulfill the daily needs and is not only better in most aspects than its competitors but also not easy to or costly imitate it can be very successful. Its all about the service, quality and customer satisfaction to keep the money flowing.