Discuss the four criteria that the resources of a firm must possess to maintain a sustainable...
Discuss the four criteria that the resources of a firm must possess to maintain a sustainable advantage. give an example of one of these criteria from Amazon company.
Homework Answers
The four criteria that the resources of a firm must possess to maintain a sustainable advantage are
1)Valuable - Are the resources valuable enough to provide operational excellence and improve process and efficiency.
2)Rare - Are the resources rare to provide a firm with competitive advantage. If many firms possess such a resource, it nullifies the rare effect.
3)Imitable - Can the resource be duplicated and created by other firms. If so, then the firm will not possess a distinctive advantage.
4)Substitutes - If a resource can be substituted by other resources, then it does not provide a sustainable competitive advantage.
The one of these criteria which can be applied to amazon are Imitable - Amazon's speed and exceptional capability gives it such a competitive advantage over other rivals that it has become the biggest online marketplace in the world. This speed and execution capabilities are difficult to imitate and set up by rivals.
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