Chuyên đề thực tập tốt nghiệp: A study on real situation of the business resources of a joint stock company in hanoi and some suggestions for further development

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NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESDEPARTMENT OF BUSINESS ENGLISH

BUI NGOC TOAN

ASTUDY ON REAL SITUATION OF THE BUSINESS

RESOURCES OF A JOINT STOCK COMPANY IN HANOI ANDSOME SUGGESTIONS FOR FURTHER DEVELOPMENT

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NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESDEPARTMENT OF BUSINESS ENGLISH

BUI NGOC TOAN

ASTUDY ON REAL SITUATION OF THE BUSINESS

RESOURCES OF A JOINT STOCK COMPANY IN HANOI AND

SOME SUGGESTIONS FOR FURTHER DEVELOPMENT

Hanoi, April, 2023

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Bui Ngoc Toan — 11195133 — Business English 61B

First and foremost, I want to convey my heartfelt gratitude to my supervisor,Assoc Prof Dr Pham Thi Thanh Thuy, for all of her encouragement and feedback,while I was writing my graduation thesis Her insightful comments and advice are

critical to the thesis-writing process, allowing me to complete the work in aproductive and high-quality manner.

In addition, during the internship, I personally received a lot of encouragement andhelp from teachers, family, friends, and the internship unit, Vietravel JSC, Hanoibranch I would also like to thank the teachers at National Economics Universityfor teaching me a lot of useful knowledge about general subjects as well as

specialized subjects, helping me to have a solid foundation of knowledge.

Last, I want to thank all my loved ones, people who have been with me andsupported me during this challenging period Without their support, it would be

impossible for me to finish my work.

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The researcher separated the Vietravel Joint Stock Company's company resources

into two groups: tangible resources and intangible resources The scholar hasgained insight into the present state of the business resources of the company

through document analysis, staff interviews, and his own internship at thecompany The business resources of Vietravel Joint Stock Company, Hanoi branch

are extraordinarily plentiful, high-caliber, and in-depth, and the company holds aplace as one of the top businesses in the tourism and travel industry not only in thenation but also in Asia Vietravel continues to hold a leading place in this"smokeless industry" thanks in part to the efficient operation of these resources,

which have a number of noteworthy qualities Positive aspects include theindustry's top-notch, qualified, and seasoned human resources; large, complete,

and contemporary facilities; a system of trip-selling networks; advanced internalmanagement; and extensive, close links with service providers both domesticallyand internationally However, there are still some restrictions on company

resources There have been internal suggestions made to improve these businessassets, boosting the company's competitiveness and assisting it in maintaining its

top spot in the tourism industry.

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LIST OF ABBREVIATIONS

VRIN: Value - Rareness - Imitability - Non-substitutability

MICE: Meetings, Incentives, Conferences and ExhibitionsJSC: Joint Stock Company

1H

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LIST OF TABLES AND FIGURES

Figure 3.1 Vietravel Joint Stock Company’s organizational structure 22Figure 3.2 Vietravel’s Facilities ccccccccesseseseesseceseeeeeeeeseeseeeceseeceaeeeeseensaeenees 23Figure 3.3 Agent management Software - Án HH gi 25Table 3.1 Vietravel Hanoi Human Resources AnalySis -«c++ 28

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1.2 P2000 s08: 022 43 6

1.3 Vietravel HanOI - - - kg HH HH nh 81.4 Visions-Missions-Business Philosophy: - 5s-c<+s<<<<ss<x 121.5 Strategy and development direction of the company in the future 13

CHAPTER 2: THEORETICAL FRAMEWORK cecceeceeseeseeceeseeseeseeteeneeaeeaees 142.1 Definition of Business Ñ€SOUTC€S Ăn si, 142.2 Business Resources cÌaSSIÍICAfIOTI 6 c1 SH ngưng 152.3 Business resources and sustainable competitive advanfages 16

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2.4 Sub-COTICÏUSIOTI Gv 9g TH HH Hà HH Hưng nh ng 18

CHAPTER 3: FINDINGS AND DISCUSSION - -ẶcSSeeeieire 20

3.1 Current Situation of Business Resources of Vietravel JSC - 203.1.1 E200 20

3.1.2 Intangible RĐ€SOUTC€S - G c1 211331111911 8 11181111 1 ng ng 263.2 Evaluating the Business Resources of Vietravel JSC 27

3.2.1 AAVANtages 27

3.2.2 Limitations 30

CHAPTER 4: RECOMMENDATIONS - Ác S2 nè 33

4.1 Improve the quality of human reSOUTC€S 5 2c 32c *++seesssersssrs 33

4.2 Improve capital efẨICI€TCV - - 6 5x n HH n HH HH ng nưệt 34

4.3 Facilities SỌUEIOTIS G9 9T TH HH HH nh nh nưệp 34

4.4 Strengthening promotion and advertising - 55+ s+< + ++sss+ 35

4.5 Strengthen business cooperation and negotiate prices with suppliers 36

0 9)/980813)/9))001 38

9551.9500917 40

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INTRODUCTION1 Background

After two years, it was almost completely frozen due to the impact of theCovid-19 epidemic, Vietnam's tourism has shown signs of improvement when the

Government allowed the opening of tourism from March 15, 2022 and manyinternational routes were restored The State has had many innovative policies,

creating conditions for tourism companies to reopen in order to develop stronglyand meet the needs of tourists Currently, travel businesses are trying to mobilizecapital, be proactive and creative in building and marketing new products to beable to restore their business.

Evaluating and improving the efficiency of travel agency business is an

indispensable job and should be done regularly to take appropriate measures to

promote business activities of enterprises Because travel agents are the mainbusiness force that brings in revenue for travel businesses, the agency's businessresults have a direct impact and have a great influence on the business situationand efficiency of the enterprise That is the reason why travel businesses need to

recognize and analyze the reality of travel agency business in each period of thecompany From there, find out strengths, weaknesses and causes to give strategic

orientations and trends in tourism development in the future.2 Rationale

Today, tourism has become one of the key economic sectors of manycountries around the world In Vietnam, the tourism industry not only brings asignificant economic source, creates jobs for workers, develops service industries

and infrastructure in the country, actively contributes to the country's GDP, but thissmokeless industry also helps promote peace and cultural exchange between

countries Deeply aware of this, the Resolution of the 9th Party Congress affirmedthat "Develop the tourism industry into a spearhead economic sector" The strong

development of the country's tourism has led to the birth and development of aseries of tourism businesses, which has created fierce competition among thesebusinesses.

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In the market economy, it is difficult to avoid fierce competition betweenenterprises in the process of existence and development It is the growth in both

size and number of tourism companies in general or travel agencies in particular

that, on the one hand, have created great turning points for the development ofVietnam's tourism, on the other hand, have created significant competitive

pressures among tourism businesses For a business to develop sustainably,resources play an important part, as inner strength helps that business have a solid

foundation to conquer greater success gradually Therefore, to be able to improve

business efficiency, as well as position their business in the market, businessesalways need to find solutions to increase business resources.

Deeply aware of those issues, as well as realizing the resource limitations

of Vietravel Joint Stock Company, I choose the subject “A Study on Real

Situation of the Business Resources of a Joint Stock Company in Hanoi and SomeSuggestions for Further Development” to research and find solutions to helpstrengthen the business resources of Vietravel JSC, thereby maintaining the

position of a leading enterprise in the tourism industry in Vietnam.3 Research objectives

The study aims at some suggestions for further development of the

Vietravel Joint Stock Company business resources Therefore, the research focuseson the following three objectives:

The first goal of the research is to review and evaluate the current situation

of the business resources of Vietravel.

Second, the study is aimed at pointing out some limitations of those

business resources.

Last but not least, the research is to offer some suggestions for further

development of the business resources of Vietravel, thus increasing the business

efficiency of the company.4 Research scope

Geographical scope: Vietravel — Vietnam Travel & Marketing Transports Joint

Stock Company

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Time scope: Data collected from the responses of the survey conducted among thecurrent customers and the staff of Vietravel Joint Stock Company in Hanoi in the

6.1 Data collection methods

6.1.1 Secondary data collection method

First of all, secondary data is a source of information that is already

available, synthesized and pre-processed, not collected by oneself, has been widelypublished, so it is easy to collect without spending much time and money It is

conceivable that secondary data is collected for other purposes, we inherit and

reuse it to serve our research Data sources are collected from both inside andoutside the company:

(i) Data source inside the company: The data source provided by the companyduring the internship at Vietravel Company Hanoi branch, collected from a number

of departments

such as Accounting Department, Administration - Human Resources Department

of the company This includes financial statements, reports on business results,

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labor situation, salary, working capital situation, and customer market.

(ii) Data sources outside the company In the thesis, some references are used suchas textbooks, books, and previous graduation theses and collected informationfrom a number of websites and social networking sites, to research the topic.

6.1.2 Primary data collection method

Primary data is collected by different methods such as: observing theworking process and collecting answers from managers and employees of the

company In the thesis, I mainly used the method of direct interview and

observation at Vietravel Company, Hanoi branch, specifically:

(i) Interviewees: Ms Do Thi Thoan (Administration - Human Resources

Department), Ms Hoang Thi Thu Phuong (Head of Sales Department, DV2) and

some members of the Accounting Department, Operating Department )

(ii) Purpose of the interview: To collect actual information and data internally ofthe company to evaluate business performance and provide solutions and

recommendations to improve the business performance of Vietravel Company.6.2 Data Analysis Methods

6.2.1 Synthetic method

Synthesize data related to the number of customers, business results of

travel agents, labor situation, salary, capital of the company during the research.

6.2.2 Analytical method

Perform analysis from calculated data and analyze through tables anddiagrams to see the growth or decrease and the factors influencing the change.

7 Research structure

The research comprises five main chapters.

Chapter 1: Introduction of the company — includes general and specificinformation of Vietravel-Vietnam Travel & Marketing Transports Joint StockCompany

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Chapter 2: Theoretical Framework — provides a literature review andproposed research framework.

Chapter 3: Analysis and Findings — contains the analysis of data collected.

Chapter 4: Recommendations — proposes some useful suggestions for

solving the problems.

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CHAPTER 1: INTRODUCTION OF VIETRAVEL JSC

Id Overview

Full company name: Vietnam Tourism and Transport Marketing Joint Stock

Company — Vietravel

Business sector: Tourism and transportation marketing

Areas of activity: Hanoi, Da Nang, Nha Trang, City Ho Chi Minh, Hai Phong,Quang Ninh, Can Tho, Southeast Asia, America, Europe,

Services: Domestic and international tours, travel transportation, study abroad

consulting, ticketing for flights, trains, currency exchange

Slogan: Professional travel organizer

Address: 3 Hai Ba Trung, Hoan Kiem District, Hanoi

Telephone: (84.4) 39 33 1978FAX: (84.4) 39 33 1979

Email: vtv.hanoi@vietravel.com.vn1.2 Development history:

Vietnam Tourism and Transport Marketing Joint Stock Company —

Vietravel — Hanoi branch is the leading company of travel companies in Vietnamtoday, with 2016 revenue reaching over 2,000 billion Vietravel has reaffirmed itstop ranking in terms of the caliber of its services, the breadth and diversity of itsproduct offerings, the thoughtfulness of its customer care practices, and theconstant application of technology that has resulted in the development of

numerous tools for quick and efficient customer support anywhere and at any time.

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Vietravel was founded in 1995, and after 22 years, has built a broadmarketing network across the nation, with offices in Hanoi, Lao Cai, Hue, DaNang, Quy Nhon, Nha Trang, Ho Chi Minh City, Can Tho, Phu Quoc, Binh Duong,

Dong Nai and many other nations, including the US, Japan, Cambodia, etc.Vietravel will continue to expand its distribution network to most of the major

tourist destinations around the globe, helping to promote Vietnam's tourismindustry and sending an increasing number of Vietnamese people to all five

With the prestige and quality of service, Vietravel is honored to be selected

as the leading transport provider in Vietnam for many international events, in

which, especially the 2006 APEC Summit, the Congress, the 13th Southeast Asian

Student Sports Festival, the 2008 Vesak Festival and the most recent event is theorganization of means of transport for the 17th ASEAN Summit during Vietnam's

tenure as ASEAN chair.

At the APEC conference in 2006, Vietravel Tourism Company performedits allotted tasks to a high standard, earning the government's highest honor—the

Second-class Labor Medal—which the President later bestowed upon thecompany Work of the highest caliber for Vietravel - "The unit has excellentachievements in its work from 2005 to 2010, contributing to the cause of building

socialism and defending the country." Vietravel also won numerous accolades,commendations, and awards from the Ministry of Transport, the Vietnam NationalAdministration of Tourism, national and local media outlets, and newspaper

readers, including those from Saigon liberated, Saigon marketing, Saigon times,and the Vietnam Economic Newspaper.

In particular, Vietravel is also honored to receive international awards suchas: "The Friends of Thailand" by the Tourism Authority of Thailand, "Outstanding

tour operator 2010" by the Ministry of Tourism of Cambodia, trophy "TourismAlliance Awards 2010 - operator" the best foreign tour in Indochina” of the tourism

industry of Indochina countries

On the basis of sustainable development after 22 years of establishment and

development, in the period 2011 - 2015, Vietravel restructured the company's

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operating model including 6 member companies to develop business in the fieldof tourism in an in-depth manner In 2012, Vietravel completed the deploymentof a network of 11 tourism offices in key markets around the world such as theUnited States, France, Hong Kong, Malaysia, Thailand, Singapore, and aims to

become one of the 10 The leading travel company in Southeast Asia with the goalof reaching 500 000 - 600 000 visitors with a turnover of over 4500 billion by2015, by 2020 Vietravel strives to reach 1000 000 visitors and become one of the

10 leading travel companies in Southeast Asia This is a challenging goal, but with

one common goal, Vietravel has been realizing its strategic goals.

With a system of rich and attractive programs and high-quality services,

Vietravel Hanoi has succeeded in organizing many large and small groups of

tourists traveling to famous landmarks stretching through the country.

e Support services:

Some services that Vietravel provides: Organizes tours that combine activities

of conferences, seminars, training, teambuilding, ; Car rental, tour guide,interpreter (English, French, Spanish, German, Italian, Japanese, Chinese, );Booking flight tickets, booking hotels (international and domestic)

1.3 Vietravel Hanoi

Established in May 1996, the branch of Tourism and Transport MarketingCompany in Hanoi has quickly grown to become one of the leading travel

addresses in the Northern market.

With more than 20 years of experience in the travel industry with aprofessional service style that meets the standards of the nationwide Vietravel

service system, Vietravel Hanoi has received the enthusiastic support of a large

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number of tourists in Hanoi Vietravel Hanoi has a team of professional, dynamicand creative staff and guides, who wholeheartedly work, and above all for theinterests of customers.

With a network of golden partners across the country and the world,

Vietravel Hanoi meets most of the customer's requirements related to travel

services, organizing seminars, conferences, training, training, events,

1.3.1 The organizational structure of the company, basic functions, and tasksof each department

The board of directors is the company's highest level; from here, alldecisions to help the company develop are made The other elements are

completely independent of one another Each department has its own purpose and

mission, but they always work closely together to provide the best services to

1.3.1.1 Board of manager

Regularly review the daily reports of other departments, particularly themarketing department, since it controls the company's existence as the department

in charge of all operations In order to compete with numerous other businesses in

the tourist market, the director always has a thorough understanding of the

company's business operations, quickly grasps the market, and quickly develops

decisions and strategies The Board of Directors also implements essential humanresource management procedures, such as hiring and dismissing staff membersand dividing up the authority and responsibilities of the company's various

1.3.1.2 Operating Department

This is the organization's most crucial component One could say that this

serves as the company's main focus for putting all of its work into action To ensurethat the quality standards are met, this section is in charge of organizing and

carrying out the full implementation of tourism programs, including hotel roomregistration, transportation services, visa processing, etc.

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1.3.1.3 Marketing Department

This is a decisive part to the ability to attract tourists at Vietravel travel

company This department is often organized by specific market areas or by

customers The Marketing Department is the company's diplomatic agency

responsible for market research, propaganda and advertising, participation in

tourism and food markets, and relationships with travel agencies to send guests.This is the department that directly deals with customers, building the image ofthe company in the eyes of customers and other objects.

The Marketing department has a fairly close relationship with other

departments, especially the company's guidance department, through which to

learn the needs of customers about psychological characteristics, preferences, etc.,

thereby offering methods Best service to customers, especially the familiarcustomers of the company.

1.3.1.4 Guide Department

The Guide Department has a very important role in the operation of tourism

businesses The members must be individuals who genuinely enjoy their work,and have all the qualities of a travel enthusiast to be able to complete the task inan excellent way.

As a travel business company with the traditional business motto is travel,

but mainly the domestic market, Vietravel has a relatively large team of guides,highly qualified, experienced and enthusiastic The guiding department has themain task of guiding guests according to the signed travel programs In addition,

the Guidance Department also undertakes to build, maintain and develop a teamof guides as well as official employees of the company, always fostering andimproving professional qualifications to meet the requirements of the company.

customer The guidance department also has a close relationship with theMarketing department for the work to be implemented effectively The guidingwork is organized in two forms: online training and guiding topics.

1.3.1.5 Accounting department

This department is responsible for performing accounting and accounting

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work for the company, ensuring the state regulations on accounting andaccounting, the company only needs one accountant, who is experienced andenthusiastic Love the job, so the company's financial and spending work istransparent And the compensation of employees in the company is also done

quickly and fairly.

1.3.1.6 Personnel Administration Department

This department takes care of the organization of personnel for thecompany Always responsible for coordinating, recruiting or firing employees of

the company In addition, the human resources department also accumulates the

reward or discipline of employees in the company.

The department also plays an important and indispensable part in thecompany, the recruitment and training of human resources to create a team ofexperienced and enthusiastic employees depends on this department.

1.3.1.7 Communication department

As a place to promote the company's brand, offer attractive advertisingstrategies with tourist attractions to mass media such as social networks and online

newspapers It is a place to offer promotions, gratitude to customers, make

membership cards, and send gifts to members Is the place to receive and process

customer feedback before and after registering or using the company's travel

1.3.1.8 Domestic tourism department

The department is responsible for coordinating with each market segmentof foreign tourism and exploiting the domestic market Attracting and organizing

the process of building, selling and conducting domestic tours suitable for eachseason and group of guests.

1.3.1.9 International tourism department

The department conducts market research activities, conducts propagandaand advertising activities, mass media and modern media (the Internet) to attract

customers to the company.

Exploiting and building a sales system at branches with scientific

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organization orientation Identify foreign partners to receive Vietnamese tourists.On the basis of the tour plans that have been conducted, a selection of pricing

services will be selected in accordance with the requirements of the guests.

Planning to implement the entire work of implementing travel itineraries in

conjunction with the operating room, coordinating the guides and monitoring the

process of performing the tour with the accounting department and paying for the

1.3.1.10 Ticket department

Perform the task of contacting airlines to exchange and sell air tickets for

flights of tourists of branches as well as transaction offices.

1.4 Visions-Missions-Business Philosophy:1.4.1 Visions

Vietravel seeks to become one of Asia's top ten travel groups based on

sustainable development over nearly 30 years of establishment and development.

This is a strategic and difficult vision, but Vietravel has been achieving its strategic

goals by working together.

1.4.2 Missions

Providing positive emotions to visitors throughout their journey

This is the commitment and purpose that Vietravel makes to its visitors.Vietravel becomes a travel companion for tourists on every trip and generates goodvalues Travel is not only a voyage of discovery for Vietravel, but also a journeyof sharing, demonstrating the unique imprint of the Vietravel Brand through threebrand attributes: professionalism, bringing sublimated emotions to customers and

attractive added values for visitors after each journey.1.4.3 Business philosophy

® Customers are the center

Because customers are the main contributors to the Vietravel brand, Vietravelalways affirms that customers are the center of all business activities that Vietravel

aims to.

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e Professionalism is a measure

Affirming brand reputation while continuously developing and perfecting to

achieve new heights in the strategic direction of reaching out to the world.

Vietravel is committed to giving the best service quality to customers, which

sets it apart from the competition Vietravel regards it as the duty and honor ofeach employee - employee pellets.

1.5 Strategy and development direction of the company in the future

The fourth industrial revolution is in its early stages and will impact all

socioeconomic fields, opening up many development opportunities for Vietnam

because it is aimed not only at industry but also at digital technology, bringingoutstanding achievements of digital technology in all fields, including tourism.The Vietnam National Administration of Tourism has recognized the use ofinformation technology in the tourism industry as one of the game-changingsolutions for increasing Vietnam's tourism competitiveness Applications ofinformation technology will be a useful tool for three primary target audiences:

managers, service providers, and tourists Vietravel will intensify its use of

information technology in the future by creating a digital transformation strategy,

fostering smart tourism, e-government, cutting-edge service environments, and

assisting new startups In order to discover and grow the customer market, thebusiness works to promote tourism promotion activities and expand the list of

nations that are piloting the use of e-visas.

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CHAPTER 2: THEORETICAL FRAMEWORK

2.1 Definition of Business Resources

There are many ideas about materials that come from various perspectives.

Wernerfelt (1984, p 172) introduced the first and broadest definition of a resource

as everything an enterprise possesses, particularly tangible and intangible

resources related to the business Business resources, according to Barney (1991,p 101), are any assets, capacities, organizational procedures, information

characteristics, or knowledge that a company has control over Business resources

are assets that are accessible and helpful to enterprises in the process of locating,seizing, and managing opportunities and risks in the market; they also includecapabilities and other useful and available assets, according to Sanchez et al.

(1996) Grant (1991) asserts that, contrary to Nanda's (1996) viewpoint thatresources are fixed inputs with characteristics of enterprises; there is no market to

buy and sell them; is created from the input factors that are processed, that theinputs of the production and business process are assessed as the resources of theenterprise Amit and Schoemaker (1993) defined business resources as readily

available elements that the company owns and controls These elements can takethe shape of tangible assets (factories, machinery, equipment, etc.) or intangibleassets with a commercial purpose (copyrights, licenses, etc.) The company's

personnel resources may also be to blame Resources will be transformed intoproducts and services in accordance with the needs of businesses and customersthrough the utilization of the enterprise's resources, the application of scientific

and technological advancements, and the use of information systems This will beaccomplished through the leadership and work of all levels within the enterprise.

Some researchers stress that capacity, which is used to boost the productivity

of other sources, is also a resource, albeit one that is unique, latent, and specific toeach enterprise Makadok (2001) defined a resource as a group of elements that acompany owns and controls; a capability is the capacity to utilize resources It is

regarded as an intermediate product made to boost business performance andshows the enterprise's capability in the process of carefully combining resources.A limited number of resources have the capacity to do so, despite being the

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fundamental input of the manufacturing process These include variables likemachinery, laborers' skills, patents, brands, and finances Unless they are gathered

and connected to work successfully together, giving the company a certain

competitive advantage, they won't be profitable Amit and Schoemaker (1993) alsohighlight a business's capacity to allocate resources through the organizational

process in order to produce the intended outcomes The capacity of an enterpriseto depend on data, tangible processes, and intangible processes is created over time

through complex interactions between the enterprise's resources Because of their

improved resource efficiency, strategic flexibility, and protection of final assets orservices, they can be conceptualized as "intermediate goods" produced bybusinesses As can be seen, capabilities are the primary building block forestablishing competitive advantages if resources are viewed as the beginning point

of capabilities.

2.2 Business Resources classification

The wide range of definitions leads to a wide range of resource classification

standards According to physical form, Wernerfelt (1984) divides resources intotangible (material, financial, human, organizational) and intangible (technology,

image, know-how) categories Resources are divided into three categories byBarney (1991): Organizational capital includes formal reporting structures,

systems of planning, control, and coordination, and relationships between groupswithin the enterprise and with the outside environment Physical capital includestechnology, facilities and tools, means, and materials Human capital includesexperience, intelligence, relationships, and internal characteristics of people asmanagers and employees According to Grant (1991), there are six categories of

resources, including: financial, tangible, human, technical, reputation-brand, and

organizational resources.

Amit and Schoemaker (1993) classified resources according to

commercialized and non-specialized resources, while Sanchez et al (1996)

divided capabilities and other valuable and available assets; In addition to

resources, capacity is a special characteristic of a company and is used to linkresources to an enterprise, like a system for internal knowledge sharing.

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2.3 Business resources and sustainable competitive advantages

Barney (1991) asserts that, in order to have the potential for sustainablecompetitive advantage, enterprise resources must have four attributes according to

the VRIN model (Value - Rareness - Imitability - Non-substitutability).

(Barney, 1991, p 106) "Other characteristics of a firm, such as scarcity, difficulty

in imitation, and difficulty in replacement, can be seen as sources of competitive

advantage, but these characteristics only become resources if they seizeopportunities or counteract threats in the business environment." (Barney, 1991, p.

e Rareness

Second, resources must be hard to come by and scarce among rivals, both

present and future Resources that belong to a business must have a unique value

in order for it to benefit from using them; otherwise, competitors will swiftly copythe advantage When a firm is putting into practice a value-creation strategy thatnot many other firms are also doing at the same time, it has a competitive edge.

(Barney, 1991, p 106) "Even though the strategies mentioned are valuable, if this

particular group of resources weren't in short supply, many other businesses would

develop and employ them, and they wouldn't serve as a source of competitiveadvantage." (Barney, 1991, p 106).

As a result, "it can be argued that valuable organizational resources that are

scarce can be sources of competitive advantage, which is another way to describethe advantage of pioneering firms in accumulating competitive advantages."(Barney, 1991, p 107).

e Imperfect imitability

Competitors can only fully understand a resource's structure to a certain extent;

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