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Competing On Resources: A Comprehensive Study of Article by David J. Collis and Cynthia A. Montgomery

This document summarizes David Collis and Cynthia Montgomery's article on competing on resources. It first provides a brief history of strategic management, from Porter's competitive strategy to the resource-based view. It then defines the resource-based view as assessing a company's resources and determining if they are valuable, rare, imperfectly imitable, and non-substitutable. The document lists five tests to determine if a resource meets these criteria: inimitability, durability, appropriability, substitutability, and competitive superiority. Finally, it discusses strategic implications of investing in, upgrading, and leveraging resources that pass these tests to maintain competitive advantage.

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Hareem Zoya Warsi
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107 views

Competing On Resources: A Comprehensive Study of Article by David J. Collis and Cynthia A. Montgomery

This document summarizes David Collis and Cynthia Montgomery's article on competing on resources. It first provides a brief history of strategic management, from Porter's competitive strategy to the resource-based view. It then defines the resource-based view as assessing a company's resources and determining if they are valuable, rare, imperfectly imitable, and non-substitutable. The document lists five tests to determine if a resource meets these criteria: inimitability, durability, appropriability, substitutability, and competitive superiority. Finally, it discusses strategic implications of investing in, upgrading, and leveraging resources that pass these tests to maintain competitive advantage.

Uploaded by

Hareem Zoya Warsi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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COMPETING ON

RESOURCES
A COMPREHENSIVE STUDY OF ARTICLE BY DAVID J. COLLIS AND CYNTHIA A. MONTGOMERY
SYED MUSTAFA HASAN
18386
HISTORY AND EVOLUTION OF
STRATEGY
 What is strategy?

 Brief History of Strategy

 Evolution of strategies:
1. Porter’s Competitive Strategy
2. Core Competence
3. Resource Based View
RESOURCE BASED VIEW (RBV) FOR
STRATEGY
 What is Resource Based View Strategy?
 What makes a resource valuable?
COMPETITIVELY VALUABLE
RESOURCES
 There are 5 tests (questions) to determine whether a resource is valuable
with respect to the industry dynamics
1. The test of inimitability: Is the resource hard to c o p y ?
2. The test of durability: How quickly does this resource depreciate?
3. The test of appropriability: Who captures the value that the resource
creates?
4. The test of substitutability: C a n a unique resource b e trumped by a
different resource?
5. The test of competitive superiority: Whose resource is really better?
 Strategic Implications - Managers should build their strategies on resources that
meet the five tests outlined before.

 Investing in Resources - continual investment in order to maintain and build


valuable resources.

 Upgrading Resources - Companies may find themselves in a situation where they


don’t possess valuable resources or they have been imitated by competitors, hence
companies must constantly upgrade the number and quality of their resources.

 Leveraging Resources - Corporate strategies must strive to leverage resources into


all the markets in which those resources contribute to competitive advantage or to
compete in new markets that improve the corporate resources.
ANY QUESTIONS?

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