Strategic Management Essay Example | Topics and Well Written Essays - 2500 words - 19

Strategic Management - Essay Example According to him, this is the â€Å"VRIN† resource based view of a company. Cohesive leadership, brand equity, brand value, trademarks, patents and copy rights are certain types of VRIN resources of a firm (Srivastava1, Franklin and Martinette, 2013). These resources of the companies should be coupled with proficient â€Å"capabilities† for generating the best outcomes from the operational activities of a concern. Through acquisition of rare resources and capabilities, companies can generate significant entry barriers within its industry. The differentiation strategies of the firms can be successful only with the help of extraordinary resources and capabilities. Sustained competitive advantages of giant multinational companies can be attained only through acquisition of unique productive factors.VRIN resources and its internal capabilities are strategically valuable for a company for certain special features. These resources helps an organization create value for its customers and this value exceeds the cost of its operations. The value of the consumers depends on prices of a product or a service of a company (Srivastava1, Franklin and Martinette, 2013). Through VRIN resources a company can lower its product or service pri ces more than that of its competitors and hence tap a wider base of customers. By achieving greater competitive advantages, a company can earn more profit than its market rivals. The factors causing commercial prosperity of successful multinational companies as Apple, Amazon and Ikea can be effectively analyzed through VRIN analysis model. The tangible and intangible resources of Apple Inc. are its valuable to its business. The land buildings acquired the company, its capital resources and equipments types of its valuable resources in business. The brand reputation of the concern, its trademarks and patents are also types of insubstantial factors. High social and commercial prosperity can be achieved by Apple Inc. only