Industrial Organization and Resource Based Value model
Our focus for this model will highlight the competitive advantage given to IBM by the extensive research it has done on semi- conductor technology. This is real for IBM because it has used this resource from a team point of view rather than individual experts employed by IBM. Handling this resource in deep connection with other existing resources has enabled the management of IBM to use this advantage to acquire a big share of the electronics market.
Coca cola has made use of the internal environment to enhance its position in the market. Using the vast array of financial resources available at its disposal, Coca cola has setup its company buildings and processing plants almost everywhere in the world. The effect of this strategy is low cost of production hence offer competitive prices for the finished products. Coca cola also has a vast availability of cash resources that enable it to avoid unnecessary borrowing for urgent spending. This reduces the debt obligations thus enhancing the image of the company.
Apple is characteristic for introducing revolutionizing electronics products into the market. This has led to a major following by customers leading to market dominance by Apple. The iPhone, for instance, was a pioneer product in the line of touch products that caught a large base of customers. This resulted in a special price plan by apple because Apple perceived that there are customers who will be loyal to the iPhone brand for life as compared to Nokia or Samsung.
Microsoft is the leading vendor of desktop software. Statistics rank Microsoft as the dominant player in this industry because of the scales of production coupled with the widescale use of Microsoft’s software. Established as a first mover, Microsoft’s desktop software has posed a great challenge for the entry of a second competitive player. Though Linux based providers have offered solutions for desktop deployment, the resulting competition has not taken effect.