extra bem ch 5

Value – it is created by selling price, production cost and quality differentiation. Application: Canon
manufactures high quality image and optical products which include digital camera, camcorders,
photocopy machines and medical equipment.

Imitability – if resources are difficult to imitate, an organisation might gain a temporary competitive
advantage. Application: Canon does not have a high level of imitability because the advances in
technology have allowed some companies to begin to manufacture high quality image and optical
products like Canon.

Rarity – if resources are rare and thus only one or a few organisations are in possession of, or have
access to these resources, a competitive advantage is guaranteed. Application: the lack patents in
manufacturing technologies does not make the manufacturing technologies used by Canon be
deemed as being rare.

Organisation – the organisation and maintenance of the other three elements is important.
Application: It can be noted that Canon continuously invests in research and development to harness
its emphasis on producing high quality image and optical products.