Strategic Positioning
The difference between the maximum the consumer is willing to pay and the current market price.
Consumer surplus
This assumption of RBT suggests that not all firms are the same.
Resource heterogeneity
Having a bias for safe bets. This is generally more reflective of employees rather than owners, as employees cannot diversify away their risks at work.
Risk aversion
This process comprises line and staff activities which add value to finished products.
Value chain
These are the 4 components of the resource analysis framework.
Valuable, rare, inimitable, organization
The result of agents and principals having divergent interests combined with information asymmetries.
Agency problems
An often-failing strategy that entails a lack of commitment toward establishing either cost or benefits advantages.
Stuck in the middle
The competitive implication of possessing useful resources that happen to be common within your industry.
Competitive parity
Disruptive behavior used by employees to help them gain an edge against each other. It is generally more associated with relative measures of performance, than absolute measures.
Sabotage
A type of strategy that is ideal when product differentiation is low in the market, it involves undercutting if you are a cost leader and charging similar prices to rivals if you are a benefits leader.
Market share
This implies that resources may not easily be spread or acquired by other firms.
Resource immobility
This process tends to reduce the variability of payouts or outcomes.
Risk pooling and sharing
The two dimensions of strategic positioning.
Product variety and customer groups
The the 3 classic intangible barriers to imitation.
Unique History, Causal Ambiguity, Social Complexity
This occurs when a supervisor is unwilling to give poor performance evaluations to employees.
Rating compression