With the changes in the economic and global business environment, business structures have also been changed. Previously, only the external environment of the firm was kept under consideration, while formulating the business strategies and strategic decision making.
However, with the said changes, the overall focus on the management within the firms has been diversified to internal factors and environment. In this regard, a lot of studies have evidently surfaced that the core competitiveness of the firm is sourced to its resources having numerous and diversified features. These features mainly include the economic rent, economic values, and generic high values among the others.
The resources of the firms and their competencies are the keys to success of the organization which also facilitate it in order to manipulate the company’s external environment as well as the entries of new entrants and players in the market, and the competition in the market. These, therefore, become a sustainable competitive advantage. These types of strategies by the firm mainly focus on the company’s internal environment and are sourced to the physical assets owned by an organization.
Subject study is aimed to analyze the Resource-Based View of the firm’s Strategies in order to attain and maintain a sustainable competitive advantage. In order to reach the said set of objectives, the company selected is the “Toyota Motors”. The Toyota Motors is one among the most popular and largest multinational firms, mainly dealing in motor vehicles around the globe.
The company is famous for its product design, innovative machines, reliability and other features. “Hybrid Cars and Vehicles” are among its latest innovations. Finally, the report is based on qualitative research design while using the secondary sources of data mainly.
The resource based on the view of firm’s strategy refers to the framework depicting that all the three levels of the company’s strategies should take its resources and capabilities into account along with the consideration of its external environment. Competitive advantage of the firm is mainly based on the valuable and rare resources.
This competitive advantage can be sustained by the firms over a long period, while employing internal capabilities and competencies in order to protect them from imitation, substitution and transfer. Generally, in this regard, the model and framework evidently worked the best using the Resource-Based View.
In this regard, numerous studies have identified and surfaced many key resources in order to develop and deploy the value of the firm. These resources include both the internal and external resources.
The resources based view of firm’s strategic decision making depicted that the network connections and the partnership among the different entities and organizations identified the ways facilitating the aggregation, exchange and sharing of different resources in order to achieve the configuration which is superior to the ordinary one of exclusively internal resources. This is done especially in the context when the organizations lack the strategic resources.
In order to survive in the industry, every business and every firm must have to gain the competitiveness and competitive advantage even it is temporary. These objectives may also be achieved by limiting the learners and service support. Furthermore, subject strategies also require tightening the cost control systems. The cost control systems may also be benefited by using the concept of economies of scales in production or the different concepts of economics including the experience curve and so forth.
When adopting the change, management plays the main role of ensuring the business has been aligned and prepared to accommodate a new way of doing things. Moreover, the management should impose change to its employees; employees should be prepared to accept and adopt the system that has been introduced. For an effective change management system to be implemented, managers should involve their staffs right from the initial stages of the change.
As mentioned above, the resources-based view might be used in numerous studies in business and industry. In order to examine the resources utilized by the firm for thriving, for instance, in housing development, the resource based view was formally introduced initially by the Werner Felt in 1984. He was of the opinion that the competitive advantage of the firm was normally attained and based on the resources available to the firm and its abilities to exploit them.
He further added that the scholars were misled concerning the concept of competitive advantage that was based on the exogenous conditions. These resources of the firm are heavily embedded in the business processes of the firm rather existing in vacuum. Furthermore, some specialized and specific activities of the firm are handled mainly by employing the networks and systems of resources organized in some specific and special ways.
As a matter of fact, these systems and networks are mainly termed as the capabilities. Moreover, they facilitate the attainment of the corporate goals and objectives. These capabilities that a firm has are mainly the surface of the means through which a company may achieve the objectives and aims of the business.