Question

How is the Resource-Based View useful in determining whether a firm’s IT strategy has created value? Give an example of how RBV was used by Amazon to create competitive advantage.

Answer 1

The Resource-Based View is helpful in deciding if a company's methodology has made competitive advantage comes from the forces framework, this view maintains that competitive advantage comes from the information and different assets of the firm.

The resource-based view (RBV) is an administrative system used to decide the vital assets a firm can endeavor to accomplish maintainable competitive advantage.

Resource-Based View (RBV) is the one of the 3 tools Amazon focus.

A firm uses its assets and abilities to make an competitive advantage. The association's assets and abilities consolidated together comprise its particular capabilities. There are two kinds of competitive advantage:

• Cost Advantage: A cost advantage exists when an organization can convey similar advantages as their rivals yet at a lower cost
• Separation Advantage: A separation advantage exists when a firm can convey benefits that outperform their rivals.

Amazon effectively recognized the correct assets and built up its abilities in key objective territories. These speculations came about in refined internet retailing advances , personalization highlights for clients on its sites , solid and effectively versatile IT frameworks every one of the one stage , new items (100 distinct items in seven significant geographic business sectors) , top client relationship framework and best in class warehousing