Wednesday, March 26, 2008

Competing on Resources

This article reminded me of dating here in Provo. Some of the concepts from the article can be applied to this context. There is an abundance of individuals here, all with the same goal but each situation requires analyzing the competitively valued resources.

The test of inimitability – Can this be imitated? Under normal circumstances, being educated (especially working on a Master’s degree) would definitely be a competitive advantage. It is difficult to duplicate because getting a master’s degree is hard work and takes substantial time to achieve. However, this is not a competitive advantage in Provo. Individuals with graduate degrees are a dime a dozen here and thus is not unique in this marketplace.

The test of durability - How quickly does this resource depreciate? In the dating scene in Provo, you must act fast, because there is always some younger coming up through the ranks. Each September, a “fresh” batch of freshman arrive here culturally conditioned to be on the hunt. If you don’t keep up a regular workout regimen and rigorous beauty routine, you could find your value in the marketplace falling fast.

The test of approachability- Who captures the value that the resource creates? This concept also plays into the dating scene. As different individuals interact and date each other, their perceived value will go up or down based on who they are dating. For example, if a guy with a moderate perceived value asks out a girl who the others guys have been hesitant to approach due to her high value, his value in the eyes of the other guys and girls will accordingly go up.

*Based on the article "Competing on Resources: Strategy in the 1990s." by David J. Collis and Cynthia A. Montgomery. Harvard Business Review Volume 73 Issue 4 (1995) pages 118-128.

No comments: