Question

What resources do Lai and his organization possess that give him a competitive edge? Is this advantage sustainable? How can he protect it? Which elements cannot be protected in the long run?

Answer 1

Answer:

Southwest Airlines provides an illustration of resource-based theory in action. Resource-based theory contends that the possession of strategic resources provides an organization with a golden opportunity to develop competitive advantages over its rivals (Figure 4.2 “Resource-Based Theory: The Basics”) (Barney, 1991). These competitive advantages in turn can help the organization enjoy strong profits, especially over time.