In a typical MBA program, students may study the Resource Based View (RBV) theory of the firm. This theory posits that a firm’s resources, capabilities, and competencies are key drivers of its competitiveness and long-term success. In the classroom, students may analyze case studies and learn how to identify a firm’s unique resources and how they contribute to its success.
However, when it comes to the application of this theory, students can look at real-life situations within their own organizations or industry to assess how the RBV theory can be applied.
For example, they can evaluate the resources and competencies of a company and determine how they might be leveraged to create a competitive advantage or implement a winning strategy. This practical application of theory allows students to see the tangible results of their academic learning and understand the importance of using theory as a framework for making informed business decisions.
A practical example of RBV in action can be seen in the success of Apple Inc.
Apple has a number of unique resources and capabilities, including its strong brand image, cutting-edge design capabilities, and proprietary technology such as the iOS operating system used in its iPhone and iPad devices. These resources have been leveraged by Apple to create a highly differentiated product portfolio that has allowed the company to achieve significant market share and profitability in a number of different consumer electronics markets. Additionally, Apple’s culture of innovation and its focus on customer experience have helped to further distinguish the company from its competitors, further solidifying its position as a leader in its industry.
Through its focus on leveraging its unique resources and capabilities, Apple has been able to achieve significant competitive advantage, demonstrating the practical application of the RBV theory in the realm of strategic management.
