Building a Competitive Edge: How to Use the Resource-Based View (RBV) in Your Business

Humairaa Moola
Sep 15
3 min read

As business owners, we often look outside for inspiration—what the competition is doing, what’s trending, and what the market wants. But what if the real key to success is already within your business?

The Resource-Based View (RBV) is a powerful strategy framework that encourages you to look inward. It’s all about identifying the unique resources and capabilities you already have—and using them to build a sustainable competitive advantage.

🔍 What Is the Resource-Based View?

RBV is a strategic lens that focuses on what your business owns and how well you’re using those assets. It shifts attention from chasing competitors to amplifying your strengths.

RBV classifies your internal resources into three categories:

Tangible Resources: These include physical assets like equipment, property, cash, and inventory.
Intangible Resources: These are non-physical assets such as brand reputation, customer relationships, intellectual property, or proprietary systems.
Human Resources: This refers to the skills, expertise, and productivity of your team.

But having resources isn’t enough—you need to leverage them effectively. That’s where the VRIO framework comes in.

🧩 The VRIO Framework: A Simple Test for Strategic Advantage

Ask these four questions about your resources:

Valuable: Does it help your business serve customers better or operate more efficiently?
Rare: Do few (or no) other businesses have it?
Inimitable: Is it difficult or costly for others to replicate?
Organized: Is your business structured in a way that lets you fully utilize it?

If your resource passes all four—congrats, you’ve identified a sustainable competitive advantage.

Real-Life Example: Applying RBV in a Small Business

Let’s say you own a home-based baking business. You may think, "I’m just like every other baker." But let’s do an RBV analysis:

Tangible: You use high-quality equipment and source ingredients directly from farmers.
Intangible: You have a loyal following on Instagram who love your cultural fusion recipes.
Human: You’ve trained yourself through years of experimentation and international recipe development.

Now run it through VRIO:

Valuable – Yes, people crave your niche flavors.
Rare – Few offer this fusion style locally.
Inimitable – Your exact methods and personality can’t be replicated.
Organized – You have online ordering and automated delivery in place.

That’s your edge. It’s not just your cakes—it’s your story, experience, and systems. That’s your strategy.

How to Apply RBV in Your Business

Here’s a step-by-step guide:

Make a list of all your tangible, intangible, and human resources.
Use the VRIO test to evaluate which ones give you a lasting edge.
Invest in strengthening your rare and valuable resources—brand, systems, people, or intellectual property.
Streamline operations so your team is organized to make the most of these strengths.
Avoid spreading your energy too thin—focus on scaling what only you can do best.

Your business doesn’t need to do everything. It just needs to do the right things well.

The Resource-Based View helps you identify what makes you you—so you can build a growth strategy that’s authentic, cost-effective, and uniquely yours!

📩 Want help applying this to your business? Reach out to HM Accounting. We offer strategic planning and business consultations to help you work smarter with what you already have.

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