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How The Firm Generates A Sustainable Competitive Advantage Essay

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In the literature world, there are various theoretical frameworks available around the topic of Resource Based View (RBV). This essay will follow the developed Barney’s VRIO framework (1995) to explain theoretical concepts and illustrate the application of Wal-Mart’s case to evaluate the how the firm generates a sustainable competitive advantage (SCA). Core competencies are strategic advantages and characteristics of a business, that includes a bundle of resources and technical capabilities which enable a business to be competitive in the market (Prahalad and Hamel, 1990). Based on the literature, the competencies should have the elements of providing potential access to wide markets, massive contribution to the perceived customer benefits of the product and harder to imitate. Using various available potential core-competencies and application of Prahalad and Hamel (1990) test, it suggests the core competencies are distribution, procurement and merchandising and marketing for Wal-Mart (figure 1). However, particularly distribution seems to display more relevant as a contender of achieving SCA. This is due to its ability to have access to various markets through a number of different types of stores domestically and internationally (W5), efficient approaches in distribution lowering their costs of goods for customers’ satisfaction (W10) and the size of the firm which can be hard to duplicate (W8). Many multi-national corporations utilise business analytical technique to
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