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Competing With Ordinary Resources (POTENTIAL DRAWBACKS OF STRATEGIC…
Competing With
Ordinary
Resources
To be made for building your company’s
strategy around the innovative use of quite ordinary resources
POTENTIAL DRAWBACKS OF STRATEGIC RESOURCES
Day-to-day business performance does not rely on uniqueness.
Excessive persistence in exploiting rare resources can restrain innovation.
Competing on the basis of rare resources is costly.
Fascination with “crown jewels” can limit executives’ perspectives.
Top talents can capture the value they create.
Competing on the basis of rare and valuable strategic resources can be costly.
The desire to protect such resources can inhibit innovation.
Today’s platform business models can harness the hidden value of ordinary resources.
POTENTIAL BENEFITS OF ORDINARY RESOURCES
Ordinary talents are easily substitutable.
“Frugal innovation” stems from mundane resources, and “simple rules” are compatible with ordinary assets.
Ordinary assets are readily available.
Platform-based business models leverage ‘crowd jewels.
Ordinary resources are inexpensive.
The Trouble With
Strategic Resources
Strategic resources can capture their own value
Competing on rare resources is costly.
Day-to-day business performance does not rely on uniqueness.
Excessive persistence in exploiting rare re- sources can restrain innovation
Fascination with “crown jewels” can lead to competitive mimicry.
Ordinary Resources as
Strategic Enablers
Strategic resources offer limited benefits if you can- not gain value from them. Business models focusing on strategic resources usually underestimate the necessity of ordinary assets, day-to-day