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There are dissimilar views on how an organisation can gain competitive advantage, but contemporary research is placing greater emphasis on the resource-based view.
Explain the concept of competitive advantage AND what is meant by the resource-based view.
Competitive benefit refers to the significant benefits that an organisation has over its competitors. It can be gained on the basis of price or through some form of differentiation, like as quality of service, product design or branding which permits an organisation to charge higher prices for its products/services.
The resource based view (RBV) to achieving competitive benefits is a more recent paradigm of strategic management. This is an inside-out-view where competitive benefits are gained from the exploitation of an organisation's resources, competences and capabilities. In other words, it refers to the characteristic groups of skill that would allow an organisation to give particular advantages and deliver competitor benefit and is not dictated by the constraints of the external environment.
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