Competitive Advantage and Globalization
Competitive advantage implies the creation of a system that has a unique advantage over competitors. With the advent of globalization, the competition has become stronger and can be located anywhere in the world. The idea behind competitive advantage is to create customer value in an efficient and sustainable way. One approach to address this issue would be the use of resource-based theories of competitive advantage.
Resources are not simply raw materials but include all the inputs, such as intellectual capital, necessary to produce a good or service. Consider this as you address globalization strategies for Fortune 500 firms in this assignment. Be mindful of constraints, such as transportation costs and cultural barriers, as you complete this assignment.
Review the article “Resource-Based Theories of Competitive Advantage: A Ten-Year Retrospective on the Resource-Based View” by J. B. Barney from the readings for this module.
Based on your analysis of this article and other readings for this module, respond to the following:
- Explain how resource-based competitive advantage drives globalization strategies for Fortune 500 firms.
- Why are application of project management principles critical to effective business operations?
Substantiate your response with properly cited examples. Write your initial response in 300–500 words. Apply APA standards to citation of sources.
By Saturday, July 19, 2014, post your response to the appropriate Discussion Area. Through Wednesday, July 23, 2014, review and comment on at least two peers’ responses.
Do the following when responding to your peers:
- Read all your peers’ postings.
- Comment on the following points:
- What are the competitive advantages that are being exploited by the firms?
- Are the strategies discussed by your peers necessarily global, or are there local solutions of equal cost or lower risk that are economically defensible?
- How do the globalization strategies suggested by your peers capture a resource base beyond the lowest cost?
- What other factors are at play that your peers have missed?
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. (ProQuest Document ID: 215258436) http://search.proquest.com.libproxy.edmc.edu/docview/215258436?accountid=34899
Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643–650. Retrieved from http://jom.sagepub.com.libproxy.edmc.edu/content/27/6/643.full.pdf+html
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