This report discusses and examines Nettavisen's competitive advantage in a disruptive turbulent market by combining principles and concepts of Resource Based View (RBV) and IT portfolio theory.
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Running head: VALUE OF INFORMATION0 VALUE OF INFORMATION APRIL 5, 2019 STUDENT DETAILS:
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VALUE OF INFORMATION1 TheResource-based Viewof thefirm refers to the strategic managementtheory. This theory is greatly useful for the manager of firm in the project management.The resource-based view is a model, which understands the resources as important to bigger firm presentation. In a case where the resources state VRIO characteristics, the resources make able the company to attainandendurethecompetitiveadvantages.Inthisreport,Nettavisen’scompetitive advantage in disruptive turbulent market is discussed and critically examined by combining principles and concepts of Resource Based View (RBV) and IT portfolio theory. Resource based view (RBV) is fundamentally the approach of company, which takes into consideration all the available resources at disposal of firm; evaluate them to decide the procedure to use them advantageously or purposely to attain the competitive edge in a market. By combining the principles and concepts of Resource Based View (RBV) of firm and IT portfolio theory, the two assumption such as resource immobility and resource diversity can be considered to decide whether the company is capable to make sustainable competitive advantages by rendering the structure for deciding whether the procedures or technologies render the real advantage above the market (Semenov, 2017). The principles and concepts of resource based view of the firm and IT portfolio theory state that human capital management practices of firm may contribute considerably to sustaining competitive advantage by making proper knowledge, expertise and using technologies in the firm that are complex to reproduce. Technologies touch survives, and as such advances in reaction to altering needs. To keep with the alterations, it is required to be on high-alert for resource and ability, which render the competitive advantage. The resource-based view (RBV) strategy is very helpful in getting this by lettingthe people assess expanded contribution coming in from various rooms. The combination of these theories create the chances to establish the competitive advantage. In this way, by making resource diversity and resource immobility, the maintainable competitive advantage may be made and sustained.
VALUE OF INFORMATION2 For an instance of resource diversity, the company is considering whether to apply the modern IT product. This modern IT product may give the competitive advantage to a company in the case where competing company has same functionalities. In the case where opposing companies has same functionality, then modern IT product does not pass resource diversity test. This does not render the competitive advantage (Ruivo, et.al, 2016). Moreover, there are lot of benefits of social media sites such as Facebook and Google for organisational marketing management. These social media sites like Google and Facebook are used as strategic tools to review the competitive advantages, issues, and challenges in the business management (Hitt, Xu and Carnes, 2016). By combining the Resource Based View (RBV) of firm and IT portfolio theory, Social media marketers use the social media sites including Google and Facebook to raise reflectiveness on internet and for promotion of the service and product. Facebook and Google are very useful to create social network and business network. They are also useful in exchanging facts, information, and concepts. Social media sites are becoming the go-to place for consumers who want to learn more about a business. The reason is that these social media sites permit the business to propose and suggest the latest data in respect of anything from product, service, and forthcoming event (Langford and Haynes, 2015). Viewing the Resource Based View (RBV) as social networking sites will be helpful in gainingthegoodunderstandingofhowmanagercanbecapabletoachievemarket imperfection, in resource market as well as product markets, to advance the functions and activities of firm. Google operates in competitive atmosphere. Google is well known for the search engine. The search engine is valuable resource of Google, driving advertisement that accounts for the ninety-six per cent of revenue of Google (Kaufman, 2015). Google, because of its size, innovation, and market position, has a number of competitive advantages. When there are many competitive advantages of Google, then there is a possibility to narrow the
VALUE OF INFORMATION3 competitive advantage of Google in 3 major types such as infrastructure, new service and shares in marketplace.Firstly, Google has the extremely controlling infrastructure that cannot be easily replicated. As if Wal-Mart is considered for having high effectual supply chain infrastructure with the huge investments in the plant asset and equipment such as transport vehicle, vast facilities related to warehouse, and best tech inventory system, Google has great technology structure.Google’s services would not be possible without their infrastructure that creates it very hard for competitors to copy or even try to rival Google. Even if they had the computing know-how, they will have to spend various buildings from ground up to develop the backbone of the functions. It creates the infrastructure of Google the viable competitive advantage (Rosenberg Hansen and Ferlie, 2016). As per the above analysis it can be concluded that TheResource based view(RBV) assesses and interprets the internal resources of companies and highlights the abilities and resources in making strategies to get the viablecompetitive advantages. As per the Resource based view (RBV), not each resource of a company would be the planned resources. The combination of IT portfolio theory and Resource based viewcan be the source of competitive advantages (Lozano, Carpenter and Huisingh, 2015).
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VALUE OF INFORMATION4 References Hitt,M.A.,Xu,K.andCarnes,C.M.(2016)Resourcebasedtheoryinoperations management research.Journal of Operations Management,41, pp.77-94. Kaufman, B.E. (2015) The RBV theory foundation of strategic HRM: critical flaws, problems forresearchandpractice,andanalternativeeconomicsparadigm.HumanResource Management Journal,25(4), pp.516-540. Langford, L., and Haynes, B. (2015) An investigation into how corporate real estate in the financial services industry can add value through alignment and methods of performance measurement.Journal of Corporate Real Estate,17(1), pp.46-62. Lozano, R., Carpenter, A., and Huisingh, D. (2015) A review of ‘theories of the firm’and their contributions to Corporate Sustainability.Journal of Cleaner production,106, pp.430- 442. Rosenberg Hansen, J., and Ferlie, E. (2016) Applying strategic management theories in public sector organizations: Developing a Typology.Public Management Review,18(1), pp.1-19. Ruivo, P., Rodrigues, J., Johansson, B., Oliveira, T. and Rebelo, J. (2016). Using TOE and RBVtheoriestodefineatheoreticalmodeltoassessERPValueacrossIberian Manufacturing and Services SMEs.Procedia Computer Science,100, pp.474-479. Semenov, V.A. (2017) Product Data Management with Solid Transactional Guarantees. InTransdisciplinary Engineering: A Paradigm Shift Series Advances in Transdisciplinary Engineering, 25(5), pp. 592-599.