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Resources, Competitive Advantage and Internationalisation Strategies of Global Firms

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Table of Contents Introduction¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­1 Resources Audit of Volkswagen¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­..¡­¡­..2 Strategy Analysis-Country Selection¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­.7 Conclusion¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­.¡­..10 References¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­11 Introduction The resource-based perspective regards the organisation as a heterogeneous bundle of resources and organisational capabilities that may enable the firms to deploy its resources more efficiently than rivals. In order to stand out in today¡¯s fiercely competitive and globalised market, firms must dynamically manage their unique resources …show more content…

This is because innovation provides Volkswagen with potential access to wide variety of markets and makes a significant contribution to the benefits of the product, such as the driver-assistance systems developed by the Volkswagen researchers. And also, it is difficult for competitors to imitate. Individual resources may not yield to a competitive advantage. It is through the synergistic combination and integration of sets of resources that competitive advantages are formed. Organisations are expected to transform and organise resources into capabilities, which are selectively employed to build competitive advantage that protects their market share, their customer base, or their profit margins (Grant, 1999). Volkswagen has a system of ¡°On Demand Workplace Solution¡± designed to simplify and automate the process by which employees and suppliers capture, access, analyse and use information. This system enhances the Group¡¯s capability to consolidate technology and production skills into competences, so the company can adapt quickly to changing opportunities, such as price changes, competitive issues or supplier-related developments. Peteraf (1993) suggests that resources yield a sustainable competitive advantage to the firm that controls them when they meet four necessary condition, including heterogeneity, imperfect mobility, ex-ante limits to competition and ex-post limits to competition (figure 2). Firstly, heterogeneity refers to differences in

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