Report on Drawing on the RESOURCE BASED REVIEW (RBV) literature, evaluate whether and how Ningbo Bird CO.LTD generates a sustainable competitive advantage

Drawing on the RESOURCE BASED REVIEW (RBV) literature, evaluate whether and how Ningbo Bird CO.LTD Generates a sustainable competitive advantage.

The Resource-Based Review (RBV) give a brief description of competitive similarity in the different market situation which is considered as competitive advantage which could get within the specific period. It is considered a double process of getting benefits with the owing capacities of the firm (Kraaijenbrink, et al., 2010). Ningbo Bird Co. ltd is china based company who is dealing with the high technology products such as mobile phones, palm computers, and system equipment. In Ningbo Bird Co. ltd gain competitiveness to decide for the competitive advantages of firms, industry and among the countries. Ningbo Bird Co. ltd has created different centers in Hangzhou, which were supported by the different Ph.D. scholars who used different innovative technology stories in the field of technology. Company is working in the market with different competency strategies to avail competitive advantage in the market. There may be different competencies such as marketing and sale strategy, people and sales strategy.

Marketing and sale strategy should be unique from the other competitors to get competitive advantage in the market. According to the market situation, the CEO of bird decided to penetrate the market by targeting the young generation who loved to the fashionable products with cubic promotion strategy. For this purpose company made heavy investment in the market and afterwards they get succeeded. Building up a specific management system was set up to run the business with lower staff was strategy of Xu Lihua who paid great attention on the on the current market situation, which means that all staff will be work as a family. This will help to make the decision making and policy making power strong. The company invested a large amount of funds to cover all the branches at a single platform. Furthermore there is strategy to manage the people in a way to find out that in how way they handled the outsiders in the market therefore there should be a competent authority who handle all the matters with due care.

 In the most countries like china all the people are eager to use new technology while using mobile phones so that they could fulfill the requirement of the current era. The people who done good will be rewarded and who commit fault will be liable for punishment.

“In order to reward the excellent staffs and punish the non-performers” [Case Study CC-304-027pp-2] 

 The CEO also implement the proper execution of the plans to build a flexible environment in the organization. Ningbo bird co implemented these competencies to sustain competitive advantage in the market.

Mr. Xu, the CEO of the company, wants to increase the legacy of the company before he gets retirement, but it came to his mind that there should be promising business direction that will lead to the business of Ningbo Bird Co. Ltd. To establish the system which could sustain in the market for a century. There are many competitors in the market such as Samsung and heir in China which could serve the customers with all these services which they required from the mobile industry. He learned from the competitors and made the Ningbo Bird Co. ltd able to meet the competition in the market with competitive advantages. There are several awards of “Customer satisfaction” after the quality provided to the customers with highly satisfied customer reviews.

“We decided to set up our own sales networks to control each service terminal” [case study pp-2]

The basic interference of RBV is most likely to find the development in the organizations with the resources which are managed with different categories with identification of the pathway to get a competitive advantage with the identification of the resources and skills which are implemented to increase the skills of the organization in the market.  

With the growing and increasing competition in the market, mobile technology and other technologies are managing their resources and assets which leads to a company with the best way to compete in the market.

“When we decided to enter that industry we relied solely on ourselves for technological innovations and product development”.  [Case study pp-7]

It is renowned fact that these resources of any organization are foundations of better organizational performance in the market. The resource-based review provides a framework for the industry, which could play a core role in the organizational performance in the computer system industry. Birds maintain the ambition in the production in the mobile phone in advance technologies with the aggressive appetite of the market place. Bird strives to establish communications skills in the market to become a perfect competitor among the market. There are two types of resources used in any organization, one is tangible resources, and others are intangible resources. Tangible resources are plan, machinery, equipment, land building, cash, and all the assets of the company, while intangible resources are trademarks, brand names, patents, and licenses, etc. which are used by the company to get sustainable competitive advantage with VRIO framework.

The RBV could justify the performance and customer satisfaction between the usage of different intangible and tangible resources of the company in the market, which could give the ultimate competitive advantage in the market. The RBV force on the steps that the resources could give valuable and imperfect conditions of the company in market could be attained with the VRIO analysis presented by Barney. All the resources need to be accumulated on a single platform, which could be used properly to get the benefits of these advantages. The strategic management of the company helps the company to deal with the strengths and weaknesses of the company which could be improved by the management with proper tools.

To understand the source which provide competitive advantages to the company, there are many resources which are used such as PEST analysis, BCG matrix model and Porter’s five forces analysis but in this literature review Ningbo Bird Co. ltd use VRIO analysis to find the competitive position of the company in which four areas of resources could be analyzed. As Ningbo Bird Co. is making progress and awards of customer’s satisfaction, but there are clashes in the mobile industry of China because many competitors entered in the market with different functions of the technology. With the decreasing value of the shares of Ningbo Bird Co., the CEO was not felt at ease as there is decreasing value of the shares in the market because he knows that the competition in the mobile technology is going to be more intensive. Ningbo Bird Co. has to deal with these competitors' factors in the market with the help of VRIO model so that company could get clear direction of sustainable development in the existing position (P. J. Knott, 2015). Ningbo Bird Co. ltd gain competitiveness to decide for the competitive advantages of firms, industry, and among the countries. The company’s resources could be termed as all assets, capabilities, and attributes which could add value in the performance of the company.

Resources of the Ningbo Bird Co are brand image or equity, benchmarking, expertise on the history of technology and new handset in the market which could be explained in table with VRIO analysis:

 VRIO could be explained in the following terms:

Reference: https://i0.wp.com/www.business-to-you.com/wp-content/uploads/2016/11/VRIO-Model.png

Valuable (V)

The very first resource in Barney’s VRIO model is Valuable, which means that the company’s product must be valuable and when it is implemented on firm’s strategy it could improve the firm’s efficiency and explore new opportunities with the reduction of market threats. According to RBV the strategies to implement the resources in the market to get higher efficiency in the market which could increase the net present value of the company. Thus the brand equity and all other resources used in the competency of the work efficiency to get competitive advantage in the market.

Rare (R)

The resources used in the manufacturing of mobile phones and computer equipment must be rare in which could be used to get sustainable competitive advantage in the market. If a specific company possessed a valuable resource that is rarely available in the market it could be helpful to make the resources more beneficial for the company. The Ningbo Bird Co. ltd possessed high customer satisfaction and artificial intelligence as well as software in some mobiles and smart phones, which give it sustainable competitive advantage in the market.

Inimitable (I)

There is no doubt that valuable and rare resources help the organizations to get competitive advantage in the market, but there are also some resources that are inimitable, means resources that have no long term guarantee that it would stay with the company to get the market advantages. The inimitable resources are costly and hard to manage in the organization. In Ningbo Bird Co. ltd are market diversity, market capitalization, and artificial intelligence, which are not easy to handle. According to RBV there may be some reasons which are of inimitable resources in the market, such as; unique historical conditions, ambiguity, and complexity.  

Organization (O)

All the resources need to be accumulated on a single platform, which could be used properly to get the benefits of these advantages. The resources of the company are based on the organization, which required the capabilities of the coordination of resources within an organization. Without working organizations there is no proper structure of utilization of resources, which are assumed to be a source of competitive advantages in the different situations of the company.

     Among the competitors product distribution is according to legal regulations which is difficult to handle in the retail stores. [Case Study pp-9]

Ningbo Bird Co. ltd gain competitiveness to decide for the competitive advantages of firms, industry, and among the countries with the help of all above discussed resources. The RBV approach explains that VRIO framework is a follow-up of the VRIN framework which includes Valuable, Rare, Inimitable and Non-Sustainable. Jay Barney, the founder of both frameworks, is considered that resources to gain a competitive advantage in the market. With the growing and increasing competition in the market, mobile technology and other technologies are managing their resources and assets which leads to a company with the best way to compete in the market. It is renowned fact that these resources of any organization are foundations of better organizational performance in the market. The resource-based review provides a framework for the industry, which could play a core role in the organizational performance in the computer system industry. Birds maintain the ambition in the production in the mobile phone in advance technologies with the aggressive appetite of the market place. Bird strives to establish the communications skills in the market to become perfect competitors among the market.

At the end of all research about the sustainable competitive advantage in the market by adopting all these resources ineffective and with the help of VRIO framework that is described to manage the resources in an effective way, which could give maximum satisfaction with the longer-lasting of the business. It provides the flexibility to Ningbo Bird Co. ltd to produce more flexible product in the market. A dynamic approach to compete the internal and external resources in the market with the competitive advantages (P. W. Tresna & Raharja, 2018).

According to the case study, Ningbo Bird Co. Ltd. is developing unique products with better functionality than products offered by competitor companies. Recruiting highly qualified staff member and reducing deficiencies in the employee’s performance are the HR practices which can definitely develop a competitive advantage for Ningbo Bird Co. Ltd.  Apart from this, the company was encouraging the use of modern technology in the production process and all other operations executed at the workplace. Emphasis on world-class technology is also a factor which can contribute to competitive advantage building. Thus conclusively in the light of information presented in the case study and discussion presented above it can be said that Ningbo Bird Co. Ltd. have a competitive advantage in the competitive market.        

REFERENCES RESOURCE BASED REVIEW (RBV)

Kraaijenbrink, J., S. J. C. & Groen, A. J., 2010. The resource-based view: a review and assessment of its critiques.. Journal of management,, 36(1), pp. 349-372.

P. J. Knott, 2015. Does VRIO help managers evaluate a firm’s resources?. Management Decision,, 53(8), pp. 1806-1822..

P. W. Tresna & Raharja, S. U. J., 2018. Analysis of the sustainable competitive advantages of the creative industry in Bandung City.. Review of Integrative Business and Economics Research,, Volume 7, pp. 225-231.