The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation

  title={The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation},
  author={Robert M. Grant},
  journal={California Management Review},
  pages={114 - 135}
  • R. Grant
  • Published 1 April 1991
  • Business
  • California Management Review
Constructs an analytical framework for a resource-based approach to strategy formulation. There are five stages in this framework: analyze resources, appraise capabilities, analyze competitive advantage, select strategy, and identify resource gaps. The concepts of this framework are illustrated by reference to existing U.S. firms such as IBM, Xerox, Harley-Davidson, and 3M. This framework uses resources and capabilities as the foundation for a firm's long-term strategy because they provide… 

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