Question

The managers at Spring Hotels want to find out how their competitor, Crimson Valley Hotels, consistently outdoes them. Spring Hotels have the same facilities and equipment as Crimson Valley Hotels, but each month its efforts to reach the benchmark set by Crimson Valley Hotels fail. This is because Crimson Valley has elements such as a great location, beautiful architectural design, and customer-friendly employees that create an edge over other companies in its industry. Which of the following does this scenario exemplify?
A) Complementary products or services
B) Resource-based view of firm
C) Attractiveness of an industry
D) Segmentation analysis

Answer 1

Answer: B) Resource-based view of firm.

Explanation:

The resource-based view is used to determine the resources that can be exploited by a firm in order to have a competitive advantage over its rivals. It relates to the fact that the performance of a firm is determined by the resources that the firm has at its disposal.

In this case, the great location, beautiful architectural design, and customer-friendly employees that Crimson Valley has which gives it an edge over other companies in its industry is the resource based view of the firm.