The Resource-Based View 

The strategic management process comprises internal audits, which is most important in the expert's eye's researchers of the field concerned. As, they compare the internal audit with external data. The customer preference are become volatile, changing their identity, and especially the use of technology means to evolve the customer's requirement, so the external factors focused information does not provide the good foundation for the adaptation of long-term strategic planning, because the external ecosystem in a state of flux, the organization's resources and capacities may be a much more compact basis, that leads to define its identity. The definition of any business in the capacity based provide the foundation for strategy, rather than the definition based on needs that lead to the satisfaction level.

 

Introduction

The approach based on the Resource-based view, the resources of an organization are gaining more priority for the achievements of sustainability and competitive advantages.

The pro-RBV theory considers the organization progress based on internal resources that lead to consider 3 important categories including:

Physical Resources, human resources, and organizational resources

The physical resources mean to all unique types of equipment, locations, the adopted technological machines. The human resources included all actors, their capabilities, skills, knowledge and their specific reputation, etc. While the organizational resources referring to the structure of the organization, information systems, and the planning processes based on trademark databases, and copywriters ownership.

The resource-based view of business theory emphasizes on resources, which see them to support the organizations to avail of the opportunities and also to tackle the threats for their neutralization.

The resource-based view theory sees the amounts, the nature of the organization resources leads to device the strategy for sustainability in competitive advantages in the market. It supports the organization to develop and exploit the unique resource and capabilities to maintain and continually strengthen the resources. It also helps to take advantage of high caliber experts for planning to pursue a unique strategy that has not been adopted by any competitors in the market. This will be the uniqueness of the organization to earn a high caliber reputation and business that made the organization's sustainability advantage in the entire market and the trust of the masses enhanced.

The valuable resources include the rareness, hard to imitate, and not easily substituted, these are called empirical indicators. The said three characteristics of resources make to enable an organization to implement a strategy to take the efficiency and effectiveness, which leads the organization to gain a sustainable competitive advantage.

As the organization gains more resources, having rareness, non-imitable and non-substitutable, is leading it to stronger and more competitive mileage for everlasting capacity, and any competitor could not beat it easily in the market.

 The flowing traffic of the competent personalities will be towards the organization having a compatible reputation. The rare resources mean to the resources that have not existed with any competitor in the market. If all the firms having the same resources, including technology, expertise, and location then the competition will be the same, the one who succeeds to get the uniqueness.

If someone says that, the resources of the competitive organization common having no value, it is not fair because the common resources aid the organization in its chance for economic prosperity, but the rare resources play the role to make the organization perspective of sustainability, which is the plus point for its competitive advantages. It also gains importance, when the common resources are not imitable for other organizations. 

The RBV theorists are giving preference to adopt the rare and imitable resources to maintain the uniqueness of the organization in the bulk of competitors, even the organization having competent service providers than their competitors, it will also gain superiority over the others. If the organization's services are unique and the competitors have not any substitute for the said service would be again plus point to make sustainability and clients flow towards the organization as compared to the other competitors.

The RBV theorist owes to see the continued popularity and also seeks the excellence of understanding between the relationship of resources to its sustainability of competitive advantages of strategic management. 

Though we cannot say that the internal or external factors will always or even consistently gain importance for the competitive advantage, but the understanding of both the factors and their relationship will provide the way to design the efficient and effective formulation of the strategy, because both the factors are continuously taking modification, according to situations and scenarios. This is the competency level of the strategists to maintain its merits in all alter situations, which only possible' when these strategists keenly observe the situations and event, and they are taking the tailor-made decisions because the sustainability of the organization depends on this decision.

Conclusion:

I am concluding :

• The organization should have its research and development department to observe the market trend and he can suggest the modification in the system to the program department.
• The businessman should gain the requisite resources before starting the new business or new strategies of modification in basic business stature.
• The businessman should search for the best planners, who can plan the changes according to the market trend and demand of customers, by acquiring the knowledge of the market and the people's needs to boost up the business.

Muhammad Israr Umar

An NGO worker for the last 17 years.

muhammadisrarumar6@gmail.com