Assignment 3

Subject – MGT 104-201 International Business – Sem I

Professor – Madhur

Feb 16, 2024

Submitted by -:

Kamalpreet Singh A00181766

Suraj Chaudhary A00182001

Ketul Rajput A00182796

Gurinder Singh A00182810

Gaurav A00186785

Amanpreet Singh A00183158

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Explain the role of resources and capabilities in competitive advantage and international

business? Provide examples of companies that have successfully leveraged their unique

resources to achieve long-term success and competitive advantage.

Competitive advantage and international business depend on resources and capabilities because

they enable businesses to establish and maintain a competitive edge. While capabilities are the

things a corporation can do with its resources, resources are the assets and talents that a firm has.

A resource needs to be rare, precious, hard to duplicate, and non-replaceable in order to be

classified as strategic. Resources that are unusual or not widely available to other firms are

considered valuable since they aid in enhancing a firm's efficiency and effectiveness. Resources that

are hard for rivals to duplicate are referred to as difficult-to-imitate, while resources that are

difficult to swap out for another resource are known as non-substitutable.

A company's capabilities are its aptitudes and proficiencies in using its assets to generate value.

Businesses have a variety of options for using their assets and skills to gain a competitive edge. A

company might, for instance, employ its resources to create a brand-new, better product or service

than those offered by its rivals. Alternatively, an organisation may leverage its strengths to boost

productivity or efficacy, thus providing it with a financial edge over rivals.

For international business, capabilities and resources are equally crucial. Companies must possess

the tools necessary to compete in overseas marketplaces, which could differ from their domestic

ones.

Example

Company Name = Spotify

Unique Resources:

Spotify has a massive collection of songs, and they keep adding more by teaming up with different

music labels. This means they have a wide variety of music that suits many people's tastes, bringing

in lots of listeners.

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They're also really smart with data. They use fancy computer programs to understand what you like

to listen to. That's why you get special playlists made just for you and suggestions for new music. It

helps them show you ads for things you might actually be interested in.

Spotify has a cool way of letting people listen for free with some ads, or people can pay for a

fancier version without ads. This helps people who don't want to spend money but also gives a

better experience for those who pay. They even team up with other companies like Uber and

Starbucks to make things more fun. For example, people can pick the music in an Uber ride or hear

the same tunes at Starbucks that you love on Spotify. This not only makes customers happy but also

brings in more money for Spotify.

Spotify is like a big stage where anyone who makes podcasts or music can put on their show

directly. It's like giving a chance to all kinds of performers to share their stuff. They also make it

easy for you to share what you're listening to on social media, so your friends can join the music or

podcast party.

They really focused on making the app work super well on phones because they noticed that's what

most people like to use. So, instead of just being on computers, they made it awesome on phones.

This way, people can take favourite music or podcasts with wherever they go, and that's what

made Spotify really popular. It's like having a concert or a show in pocket.

Leveraging Resources for Success:

Spotify makes listening to music or podcasts awesome by creating personalized playlists based on

what you like. They show people ads for things they are actually interested in and let people try it

out for free, making it like a cool preview before deciding to upgrade for an ad-free experience.

They're always adding new music and shows, like a never-ending party. Plus, the easy-to-use app on

y phone means people can carry your favourite tunes with everywhere.

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Conclusion:

Spotify's success can be attributed to its adept use of its special resources. Their vast music

collection, data analytics, open platform, freemium business model, and mobile-first strategy all

work together to draw in customers, tailor their experiences, and increase conversions. In addition

to securing their place in the cutthroat music streaming industry, this strategy establishes a standard

for how data-driven personalisation may foster long-term success.

References:

 Ketchen, D., Short, J., Try, D., & Edwards, J. (2014, September 12). Resource-based
theory. Mastering Strategic Management 1st Canadian Edition.
https://opentextbc.ca/strategicmanagement/chapter/resource-based-theory/

 Kennedy, A. by R., Jamison, with E., Simpson, J., Kumar, P., Kemp, A., Awate, K.,
& Manning, K. (2020, August 14). 4.3 resource-based view. Strategic Management.
https://pressbooks.lib.vt.edu/strategicmanagement/chapter/4-3-resource-based-
view/#:~:text=While%20resources%20refer%20to%20what,%2C%20hopefully%2C
%20advantage%20over%20competitors.

 Kennedy, A. by R., Jamison, with E., Simpson, J., Kumar, P., Kemp, A., Awate, K.,
& Manning, K. (2020, August 14). 4.3 resource-based view. Strategic Management.
https://pressbooks.lib.vt.edu/strategicmanagement/chapter/4-3-resource-based-
view/#:~:text=While%20resources%20refer%20to%20what,%2C%20hopefully%2C
%20advantage%20over%20competitors.

 YouTube. (2019, March 26). Analyzing the firm 2 resources and capabilities.
YouTube. https://www.youtube.com/watch?
si=koQuhEE2ep3lsNf6&v=4_PrkHro6NI&feature=youtu.bec