Competing With Ordinary Resources Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

During the earlier couple of decades, research on resources has concluded, that a strategy should rely on control of valued and scarce resources – such as a different brand name, an unequal set of talents of an incomparable technology or abilities. In this view, the essential pillars of strategic success are unique abilities and nonsubstitutable resources, and competitive advantage stems from rare and exceptional resources. However, the writers argue that competing on uncommon distinctive and inimitable resources might be insecure, because obtaining and protecting such resources can be costly; after all, most businesses in an industry are trying to get them. The authors claim that average resources may play an overlooked but critical role in strategies that are successful - and competing with average resources can be a valuable complement to competing with strategic resources. An ordinary resource is a typical resource available on the marketplace, typically seen as neutral with regard to competence. Such a resource should ensure competitiveness.

While ordinary resources aren't, in and of themselves, a source of competitive advantage and greater performance, they are generally needed for the company to operate correctly. Examples of ordinary resources include compliance with ISO standards in the automobile industry; in retailing shops and salespeople; and sites and logistics competencies in e-commerce. Tactical resources cannot always deliver their full-fledged competitive potential unless ordinary resources are leveraged. In particular, the use of average resources enables the duplication of a business model in many business units or in many states. For example, McDonald’s Corp. is worldwide largest fast food restaurants. However, the replication of the McDonald's business model is possible especially as the model leverages relatively common resources, in the type of more than 1.8 million employees worldwide. Most entry-level McDonald's employees are not highly qualified, are part-time workers and can be readily replaced.

Mcdonald can be leveraged due to these average resources. For instance, Airbnb joins an ample variety of people that want to source their empty rooms out to hirers who are searching for a space for a few nights. Airbnb's user-friendly web site, plain and straightforward business model and 24/7 customer care service allow people to take advantage of their empty rooms a resource in their house, once thought of as comparatively useless or insignificant. "Crowd jewels, "their conclusion, can be an important substitute for "crown jewels."

PUBLICATION DATE: April 01, 2015 PRODUCT #: SMR518-PDF-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE