Smart Cities & Buildings

Smart Cities & Buildings2019-04-22T13:33:10+00:00

Barney maintained that for resources to hold potential as sources of sustainable competitive advantage, they should be valuable, rare, inimitable and non-substitutable (VRIN). Barney categorized resources as either being tangible or intangible. Tangible resources, such as technology, can be bought by other competitors to gain a competitive advantage. Intangible resources, such as positive brand recognition, however, cannot be bought and are the main source of sustainable competitive advantage.

In a cost leadership strategy, the objective is to become the lowest-cost producer. This is achieved through large-scale production where companies can exploit economies of scale.

If a company is able to utilize economies of scale and produce products at a cost lower than competitors, the company is then able to establish a selling price that is unable to be replicated by companies. Therefore, a company adopting a cost leadership strategy would be able to reap profits due to its significant cost advantage over its competitors.

Ready To Get Demo?

Now contact whit us! See free demo and what are we doing for you!