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What is the relevance of a resource-based view of a firm in a global environment?

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sbridges | Student, Undergraduate | (Level 1) Salutatorian

Posted June 19, 2013 at 1:15 AM via web

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What is the relevance of a resource-based view of a firm in a global environment?

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readerofbooks | College Teacher | (Level 2) Educator Emeritus

Posted June 19, 2013 at 2:34 AM (Answer #1)

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It is always best to start with a definition. A resource-based view of business emphasizes two points: the importance of assessing the available assets a company possesses, and the importance of gaining market edge by using these assets in a strategic manner. 

This relevance of this approach is clear, especially in a global environment for a few reasons. First, all firms should know what they possess and how these assets can be used. Second, in a global environment, it is important to also see how the firm's assets can be used in various parts of the world. When a firm does this, it may realize that certain assets are valuable and rare thus provide global competitive advantage.

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