The View Of Competitive Advantage Research Paper

The View Of Competitive Advantage Research Paper

1. Discuss the resource-based view of competitive advantage. Why is it important to understand organizational differences to use this approach?
2. Briefly define what is meant by competitive advantage. Are competitive advantage and sustained competitive advantage identical concepts? Compare and contrast the two concepts.

Resources must be within the last five years. The View Of Competitive Advantage Research Paper

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Introduction

Business entities like healthcare organizations and other firms utilize strategic management models in their planning because it helps in ensuring that all the gaps are filled thus creating no room for threats penetration. Some of the effective strategic management models include the resource-based view because it allows organizations to achieve sustainable competitive advantage (Gupta et al.,2018). In so doing, the business management team will have a clear understanding of the real drivers of performance in the organization and concentrate more on improving the drivers of change thus arriving at tangible profits. It is therefore important for businesses to use a resource-based view because it helps in identifying important resources that a firm should protect since it improves the firms’ capabilities (Gupta et al.,2018)The View Of Competitive Advantage Research Paper.

In healthcare organizations, for instance, diverse innovations and implementations of new systems and policies are constantly done because it improves organizational performance. Resource-based view is therefore a useful strategy in healthcare facilities since it uses a theoretical framework essential in linking organizational strategy, the abilities of internal organizational resources, and the implementation of diverse innovative systems thus improving healthcare performance (Assensoh-Kodua, 2019)The View Of Competitive Advantage Research Paper. In other instances, firms or organizations have unique resources which if utilized in a valuable manner, it gives a competitive advantage to the firm. This paper therefore seeks to the resource-based view of competitive advantage and explain why it is important to understand organizational differences to use this approach. Additionally, the paper will continue to define the meaning of competitive advantage, explain if competitive advantage and sustained competitive advantage are identical concepts, and conclude by comparing and contrasting the two concepts.

2. Discuss the resource-based view of competitive advantage. Why is it important to understand organizational differences to use this approach?

Assensoh-Kodua, (2019) discuss that resource-based view of competitive advantage plays a critical role in identifying unique resources and capabilities an organization has thus maintaining a competitive edge. It is important to understand that the application of resource-based view is a strategy that businesses should consider since it helps in identifying unique and valuable resources in the organization thus leading to a competitive advantage. Organizations including healthcare facilities improve their performance using diverse strategies which help in improving the quality of products or services delivered (Gupta et al.,2018)The View Of Competitive Advantage Research Paper. For example, healthcare organizations use the new technological systems like telehealth to reach the underserved populations thus increasing access to healthcare services. In so doing, other healthcare facilities that does not have the ability or resources to implement telehealth services cannot have the same market space.

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Additionally, Assensoh-Kodua, (2019) continues to add that resource-based view is an important strategy used by business organizations to evaluate the current state of organizational market space and determine what products and or service to introduce into the market. Market penetration is another benefit that organizations using resource-based view strategy have since the unique and valuable resources identified using RBV can be used to penetrate into new markets (Gupta et al.,2018)The View Of Competitive Advantage Research Paper. For instance, healthcare facilities can use many unique factors like technology to delivered high quality services that can be accessed at a comfort of a home thus breaking boundaries and penetrating to new markets.

On the other hand, a study by Hossain et al., (2021) delineate that organizations using resource-based view of competitive advantage recognize that organizations other business entities are diverse and differ in various aspects of operations. Factors like technology play a critical role in making an organization very unique and different especially in the way services and or products are developed and delivered to consumers. The size of the organization is another important factor that makes an organization unique because big businesses have larger market share because of the inputs, the workforce, and the quality of output generated (Hossain et al., 2021). Therefore, the size of a business entity is important in making a difference and making an organization unique from other organizations in the same niche. Additionally, human resource is another important factor that contributes greatly in making an organization different from others because the human resource plays a critical role in the quality of services and or products delivered (Hossain et al., 2021)The View Of Competitive Advantage Research Paper. For instance, human resource in healthcare facilities include the nurses and other healthcare providers. Therefore, if nurses and healthcare providers are adhering to clinical guidelines, have the knowledge, expertise, and experience in various areas of specialization, utilize evidence-based practices like care coordination and interprofessional collaboration, high quality services are delivered to patients thus meeting patients’ needs and expectations as compared to organizations with unprofessional providers.

Gupta et al., (2018) highlights that understanding organizational differences is essential because resource-based view helps in a way that business managers realize that using these unique differences is to their advantage. Therefore, organizations should make a great use of these differences to their advantage because it leads to increased profit margins (Assensoh-Kodua, 2019)The View Of Competitive Advantage Research Paper. This is done by targeting their resources in areas where the businesses have a distinct advantage. For instance, if a healthcare organization has access to improved technological services and systems that facilitate delivery of high-quality services through the treatment of diverse complex health conditions. Assensoh-Kodua, (2019) suggests that the organization therefore might choose to focus on using innovation and technological systems in area of specialization where it has a distinct advantage instead of competing with other organizations providing the same services using the ordinary systems. It is important to understand that when a business organization focus on where its strength is as well as targeting an area where technological innovations does well and offer an exceptional advantage over competition, the organization has higher chances of maintaining higher profit margins rather than trying to deliver an extensive range of care services since it is hard to provide everything to every other consumer.

On the other hand, the leadership of business organizations need to understand that it is hard for all companies to be successful in all areas at the same time because big organizations provide diverse services and products with diverse target population (Hossain et al., 2021). Therefore, organizations should normalize specializing on one area where it can optimize their potential and unique capabilities to achieve a sustained competitive advantage. Specializing on one area is important and beneficial because that is when the needs and expectation of the target population are met as a profit margin is also realized.

2. Briefly define what is meant by competitive advantage. Are competitive advantage and sustained competitive advantage identical concepts? Compare and contrast the two concepts. The View Of Competitive Advantage Research Paper

Business organizations including healthcare facilities strive to gain a competitive advantage which can be defined as the ability of business to deliver high quality services and or products at a lower price as compared to the competitors, and have more access to resources, goods, and services that give them an upper hand than their competitors in the same market. For example, a healthcare facility has a competitive advantage when it is offering high-quality care services using evidence-based practice like care coordination and interprofessional collaboration by skilled and competent nurses and other providers who have an extensive knowledge in diverse areas of care. In so doing, Tripathi & Siddiqui, (2018) report that patients/consumers can receive high quality personalized care thus giving them an experience they cannot get in the neighboring facility.

Healthcare facilities create a competitive advantage in many ways and the most common ones include a cost advantage where the products and or services are offered at a lower price than the competitors and differentiation advantage where products and or services offered are of higher quality as compared to those of the competitors. Skilled personnel, a strong brand, unique and high-quality products and or services, price leadership, access to innovative technology, and personalized care are some of the examples that can create a competitive advantage in healthcare (Distanont & Khongmalai, 2020)The View Of Competitive Advantage Research Paper. Other business organizations can achieve a competitive advantage by using new processes to develop new or unique goods and services and use new and efficient distribution methods thus reaching the desired market in market and meeting the needs and expectation of the target population.

Competitive advantage and sustained competitive advantage are two different but very close concepts used and applied by business entities to describe the power that a company has over another. Therefore, a competitive advantage is a broad business concept that refers to the ability of a business to deliver high quality services at a lower price and have more access to goods and services as compared to the competitors (Mahdi, Nassar, & Almsafir, 2019)The View Of Competitive Advantage Research Paper. On the other hand, sustained competitive advantage is defined as a more specific concept referring to a business ability maintain competitive advantage over time. Therefore, the two concepts are not identical but very close since one gives birth to another in that a competitive advantage can transition into a sustained competitive advantage.

While a competitive advantage is the edge that an organization has over another, a sustained competitive advantage is an edge that a firm has over another for an extended period of time (Wagner & Hollenbeck, 2020.) A competitive advantage is achieved when a business is able to have deliver unique services and this is possible when the unique goods and services that offer a competitive advantage are not imitated by the competitors. For instance, if a competitive advantage of a business entity comes from using a certain technology, that company may not have a sustained competitive advantage because the competitors may learn the tactics of how to use the same technology and hire technology experts to teach the staff on how to use the technology thus penetrating into the market. The View Of Competitive Advantage Research Paper

Conclusion

In summary, resource-based view of competitive advantage is an important strategy that business organizations including healthcare organizations should adopt and apply in their operations since some of its benefits includes acquisition of a competitive advantage. Resource-based view of competitive advantage reminds business managers that not all business entities are the same even though they offer the same services or products and that it is important to specialize in an area where a business has an advantage over. Competitive advantage and sustained competitive advantage are two different but close concepts that are important for business organizations since both serve to increase the profit margins.

 References

Assensoh-Kodua, A. (2019). The resource-based view: a tool of key competency for competitive advantage. Problems and Perspectives in Management, 17(3), 143. doi:10.21511/ppm.17(3).2019.12

Distanont, A., & Khongmalai, O. (2020). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, 41(1), 15-21.

Gupta, G., Tan, K. T. L., Ee, Y. S., & Phang, C. S. C. (2018). Resource-based view of information systems: Sustainable and transient competitive advantage perspectives. Australasian Journal of Information Systems, 22. https://doi.org/10.3127/ajis.v22i0.1657

Hossain, M. S., Hussain, K., Kannan, S., & Nair, S. K. K. R. (2021). Determinants of sustainable competitive advantage from resource-based view: implications for hotel industry. Journal of Hospitality and Tourism Insights. https://doi.org/10.1108/JHTI-08-2020-0152

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Mahdi, O. R., Nassar, I. A., & Almsafir, M. K. (2019). Knowledge management processes and sustainable competitive advantage: An empirical examination in private universities. Journal of Business Research, 94, 320-334. https://doi.org/10.1016/j.jbusres.2018.02.013

Tripathi, S. N., & Siddiqui, M. H. (2018). Assessing the quality of healthcare services: A SERVQUAL approach. International Journal of Healthcare Management. https://doi.org/10.1080/20479700.2018.1469212

Wagner, J. A., & Hollenbeck, J. R. (2020). Organizational behavior: Securing competitive advantage. Routledge. https://doi.org/10.4324/9781003009580 The View Of Competitive Advantage Research Paper