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CS Professional · Strategic Management and Corporate Finance · Competitive Positioning

Under the resource-based view (RBV) of the firm, which feature of a resource is most directly responsible for a competitive advantage lasting over time, even after rivals recognise it?

A resource sustains competitive advantage when it is costly for competitors to imitate or substitute. Under RBV, valuable and rare resources give advantage, but only inimitability and non-substitutability stop rivals from copying it, whereas easily purchased resources give no lasting edge.

  1. AIt is easily bought in the open factor market
  2. BIt is costly for competitors to imitate or substituteCorrect
  3. CIt is used only in one department
  4. DIt appears on the balance sheet at historical cost

Explanation

RBV holds that resources that are valuable, rare, hard to imitate and non-substitutable yield sustained advantage. A resource that rivals can buy easily cannot keep them behind. Balance sheet recognition or departmental use has no bearing on sustainability.

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