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Is the resource RARE? Can the resource be easily Imitated?

Valuable common resources and capabiliNes can lead to compeNNve The QuesNon of Imitability constrains
parity but no advantage (e.g., airline aircral).
compeNNon
Valuable rare resources and capabiliNes can provide, at best,
temporary compeNNve advantage Valuable and rare resources and capabiliNes are a
source of compeNNve advantage only if
Once compeNtors develop equal abiliNes, then no unique and compeNtors have a dicult Nme imitaNng them.
disNncNve capability remains on which to build a compeNNve
ImitaNon of tangible resources (such as plants,
advantage. solware, or trucking eet) is easy.
ImitaNon of intangible resources (knowledge,
managerial talents, and organizaNonal culture) is much
more dicult.
Some resources are impossible to imitate

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Imitability (contd) Can the resource be SUBSTITUDED?

Why is imitaNon so dicult? SubsNtutability may take two forms:
Time compression diseconomies: Inability to CompeNtors can use similar resource to
acquire in a short period of Nme rivals resources achieve the same strategic goals.
and capabiliNes over a long history Dierent resources can become strategic
(Mercedes failure in learning and pracNcing the subsNtute ( online stores vs. physical retailing
Japanese capabiliNes of design to cost) stores, internet-based Wechat/ Whatapp vs.
Path dependencies: History mabers Text messaging)
Causal ambiguity: What really causes the success
of certain rms? Nobody really knows!

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