Question

You are the manager of Impromptu Printing, a leading print shop. Impromptu's resources include a highly experienced staff and state-of-the-art printing presses. However, your closest competition has started to cut into your market share by offering same-day turnaround on most orders. Although your staffing and equipment is not optimized for rapid production, you decide to start offering a same-day guarantee to your customers. According to the resource-based view, what is wrong with this decision
A. You have failed to take into account resource immobility.
B. Customers tend to have negative opinions of firms that imitate other firms.
C. Employees are often resistant to changes in strategy.
D. Your business is not organized to capture value.

Answer 1

Answer:

A) You have failed to take into account resource immobility.

Explanation:

In economics and comparative advantage theories, resource immobility refers to the fact that resources cannot be simply transferred from one company to another, i.e. resources that provide comparative advantages are not transferable, while those resources that are transferable generally will not provide any competitive advantage.

In this case, the manager of Impromptu Printing wants to copy (or transfer) the resources used by the competition in order to offer the same products and services. That is not possible, because if those resources could be easily copied or transferred, then they wouldn't represent a problem. E.g. the competition is able to deliver more products because they bought a larger delivery truck, but your company should be able to buy a lease a similar one.

The competition set up a manufacturing process that allows them to produce printed material in the same day, but in order for your company to do the same, you must restructure the production processes. Just by saying that you will do something, doesn't make you able to do it.

Answer 2

Answer: a.You have failed to take into account resource immobility.

Explanation:

Resource immobility refers to the scenario where the resources of a term are not transferrable to another company. When a company has probably the human resources or capital to carry out a business then another company seeks to do same but lack those resources to carry out same task it is known as resource immobility. Considering the competition Impromptu is faced with the manager neglects their capacity and wants to use same method that works for their rivals to work in their, this is known as resource immobility not being considered.