According to the resources-based view, which selection best describes the focus to gain competitive advantage?

Prepare for the CIMA Managing Performance (E2) Exam. Practice with flashcards and multiple-choice questions, each with explanations. Get ready for your exam!

Multiple Choice

According to the resources-based view, which selection best describes the focus to gain competitive advantage?

Explanation:
Under the resources-based view, sustained competitive advantage comes from what the firm itself possesses—its unique resources and capabilities that others cannot easily imitate. The emphasis is on internal strengths that are valuable, often rare, hard to replicate, and not easily substituted. When a company has distinctive know‑how, specialized routines, patented processes, strong culture, or other unique competences, it can perform in ways competitors cannot match over time. External factors like market trends describe the environment the firm operates in, not the internal sources of advantage the RBV concentrates on. Quick marketing wins are tactical and may produce short-term bumps rather than durable capabilities. Outsourcing can reduce costs but typically does not generate the firm’s own enduring, unique resources unless it enhances or preserves those internal competences in a strategic way. So, focusing on internal unique competences aligns with the RBV as the best path to a lasting competitive edge.

Under the resources-based view, sustained competitive advantage comes from what the firm itself possesses—its unique resources and capabilities that others cannot easily imitate. The emphasis is on internal strengths that are valuable, often rare, hard to replicate, and not easily substituted. When a company has distinctive know‑how, specialized routines, patented processes, strong culture, or other unique competences, it can perform in ways competitors cannot match over time.

External factors like market trends describe the environment the firm operates in, not the internal sources of advantage the RBV concentrates on. Quick marketing wins are tactical and may produce short-term bumps rather than durable capabilities. Outsourcing can reduce costs but typically does not generate the firm’s own enduring, unique resources unless it enhances or preserves those internal competences in a strategic way.

So, focusing on internal unique competences aligns with the RBV as the best path to a lasting competitive edge.

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