i) Is it easily available?
It means that the resources are traded in the market or not. For example, the rawmaterial or resources should not be easily available to the competitors.
The resource should be such that it cannot be easily copied by the competitors andhard to copy. There are certain features of resources which makes it hard to copy:
Physical uniqueness: It refers to acquiring assets which are not available to any other competitor.For example: Service centres of Maruti.
Path Dependency:A resource base is developed expending lot over a long period of time, whichif the competitor wants to copy or develop has to spend the same time andamount i.e will have to follow the same path. This is called path dependency.For example: Corporate image, Goodwill etc.
Causal ambiguity:It means developing excellence in multi areas of which few can be copied but notthe all. It isdeveloping the sum total attribute of characteristics which are unique.
Scale deterrence:It means coming out with a mammoth size plant then taking down the costwhich cannot be copied by the competitors.
Every asset depreciates with use. But to gain sustainable competitive advantage, firmneed to have assets which don’t depreciate with use such as non-physical asset. For example: Brand name of TATA.
Resources create value. Receiver of the values varies. As a manager, it is the duty totake care that the value created by firm remains within the firm. A strategy that is bothunique and sustainable generates a significant economic value. The issue of appropriability addresses the question of who will capture the resulting economic rent.Sometimes, the owners of the business unit do not appropriate the totality of the valuecreated because of the gap that might exist between ownership and control. Nonowners might control complementary and specialized factors that might divert thecash proceeds away from the business. This type of dissipation of value is calledholdup. A notorious example of holdup in recent business history has taken place inthe personal computer industry, where Microsoft and Intel have capturedmanufacturing firms the meager 20 percent remaining.