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Indian Airline Industry

In: Business and Management

Submitted By thidatun
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A Resource-based view of the firm
Birger Wernerfelt
“For the firm, resources and products are two sides of the same coin” is a famous sentence of Birger Wernerfelt’s paper called “A Resource-based view of the firm”. The paper elucidates the usefulness of the analysing firms from the resource side rather than from the product side. To explain under what circumstances a resource will lead to high returns, the researcher used Porter’s five competitive forces. 1. General Effect 2. First mover advantages- resource position barriers 3. Attractive resources 4. Mergers and acquisition
In the paper, it is explained that first movers have advantages like gaining control of resources that followers may not be able to match. But these results are expected only if the strategy is successful. For first mover strategy, the success and the failure exits at different sides. It is a very dangerous strategy for the firm to implement, I suppose. There are so many firms who tried to use first mover strategy and failed. However, second mover strategy is quite a safe strategy comparing to the first mover strategy. Second mover strategy is the strategy that the company offers a product or service later than a competitor after learning customers' reactions and offer something better than its competitor. Because the firm starts offering the products after surveying the customers’ reaction, it has less chances to be failed. Although first mover strategy have the high expectancy to control the resources, it has high chances to be failed on the other hand. Ironically, the second mover strategy have less chances to be failed and might also have the chances to control resources if the firm try to provide better products by devoting on the R&D department. So, firm have to consider whether they will use first mover strategy which has high…...

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