Competing With Ordinary Resources (Ordinary resources can play an…
Competing With Ordinary Resources
Gaining competitive advantage through valuable, scarce and distinctive resources
A strong brand or innovative technology.
The innovative use of quite ordinary resources.
Strategic resources can capture their own value.
In some circumstances, the value of a strate- gic resource can be captured by the resource itself, at the expense of the company using it
Competing on rare resources is costly
once a resource is collectively considered as strategic in an industry, access to it becomes a vital challenge, and rivals compete to obtain it
Day-to-day business performance does not rely on uniqueness.
If all competitors in an industry attempt to be unique and to possess nonsubstitut- able resources and inimitable competencies, most of them will fail in that attempt.
Excessive persistence in exploiting rare re- sources can restrain innovation.
If the possession of specific resources is the ultimate explanation for success, innovation poses a problem
Fascination with “crown jewels” can lead to competitive mimicry
The belief in the superiority of key resources may lead competitors to focus too much on a small part of the spectrum of available resources
Ordinary Resources as Strategic Enablers
Strategic resources offer limited benefits if you can- not gain value from them. the use of ordinary resources en- ables the duplication of a business model in many business units and/or in many countries
Leveraging the Ordinary
Ordinary resources,not just unique ones ,an yield strategic benefits and eventually become the basis of competitive advantage
Ordinary resources can play an important
Unless ordinary resources are leveraged, strategic resources cannot always deliver their full-fledged competitive potential.
The mobilization of massive amounts of ordinary resources through platform business models19 can outweigh the value of a few unique strategic assets