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Resource Based View Theory Essays

Resource Base View Theory What is RBV all about? RBV theory is all about the managing the resources well. If a company can improvise, utilize, manage and hold their important, big, numerous of their resources, they can survive and be a good competitor to the existing company either in the domestic or international market. Nowadays, whether the company are first entry or Monopoly Company in the market, it does not mean they can control the markets. The trends today is whether they have enough resources or not to compete in the open market.

Before this, to gain profit, one company must produce their products in bulk. It means, there was no variety in the products they produce. However, the trend has changed, whereas if the company can obtained a lot of resources, they can gain more profits. The reason is, if the company can hold a numerous resources, they can have plenty of products that they can produces. Besides that, the company can stay in the market for a longer period. How RVB theories connect to international business?

It connect to international business when all the resources which are internal and external resources are combined together to form a strategy that best suit the domestic markets or international markets. The capabilities of the resources are also part of the things that the company should look into as it determines the competitiveness of the products that the company produces with the resources that they have in the market especially in the foreign markets.

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