Rbv Model on Eveready Business

Resources-Based View model (RBV) was created in the mid-1980s by Wernerfelt (1984), Rumelt (1984) and Barney (1986). Ever since, RBV is one of the dominant contemporary approaches to the analysis of sustained competitive advantage (Bridoux, 2004). In study case given, Eveready experienced crisis or a decline on its sales due to the existence of Chinese competitor which offered cheaper battery in market. Other than that, refer to the case study in above it also stated that Eveready has launched the Homelite lantern where the customer is however prefer to use rechargeable lantern than a battery power.

The RBV itself refer to an attempt to explore inside the firm and examine their inputs including assets can drive the output that going to be processed (Wills-Johnson, N, 2008). The resources in RBV model play important role to determine firm performance and achieve competitive advantages as well as enhancing organizational performance (Hoffer & Schendel 1978; Akio T). Resources that considered as the major input must have the characteristic of heterogeneity which means that the resources that Eveready has should be differentiate from other competitor.

RBV model divided into Resources, Capability, Core Competencies and Competitive Advantage

Resources

There are 2 types of resources;

- Tangible Resources: Tangible assets have physical existence (Study Time, 2013) as a manufacturing company the tangible resources of Eveready are Land, Building of the company, machinery, equipments, vehicles, cash, inventories, debtors, and Eveready's product. Example: Eveready company located in India, therefore the building of the company is tangible resources

- Intangible Resources: This resource is the opposite from tangible resources such as Brand, Image, Copyright, Trademark and skills of Eveready's labor. Example: The name of 'Eveready' is the brand which is intangible resources.

Capability

Terms of capability refer to firm's capacity to deploy resources, usually in combination, using organizational processes, to produce a desired effect Stalk, et al. (1992)

Based on theory above, if Eveready able to fully utilize their resources and process into a output it means Eveready have capability. The greater utilization of resources is more potentially to gain creation in output which arise the value of the product itself.

Furthermore, the literature added to be able to fully utilize, Eveready needs to carry out a combination of resources and organization process. So besides resources, it is important for Eveready to have a structured work design in the company that has individuals or groups to be assigned for task and decision making. (Cliff Notes, 2013)

Core Competencies

Core competencies can be defined as a competence of a firm that came from a combination of firm resource both tangible and intangible and its capabilities to produce a product which is differentiate from other competitor. Company core competency product can be assumed as its signature product that has largest market share among other product. Relating to the case, Eveready core competency could be the Dry cell battery as its first product that lead Eveready to be a leader in battery market share, with the combination of carbon zinc and aluminum plate and other material imported from US which processed with high-tech machine make Eveready energizer battery has high durability and make Eveready lead the battery market since 1905 because at that time the existence of battery company is still rare especially in India (Business Standard, 2013).

Competitive advantage

Competitive advantage is the results from the deployed combination of resources and capabilities (Penrose, 1959) Competition advantage is a uniqueness or strength of a company maybe their brand or ideas that doesn't available in another company. As a leader in dry-cell market industry Eveready competitive advantage is their brand image that already becomes a trustable company. Their brand image is achieved by the quality and diversity of their product. To gain a reputation is not easy, therefore Eveready need continuous improvement to preserve their image.

According to Strategic Management Insight (2013) "In RBV model, resources are given the major role in helping companies to achieve higher organizational performance"

RBV model divided into Resources, Capability, Core Competencies and Competitive Advantage

Resources

There are 2 types of resources;

- Tangible Resources: Tangible assets have physical existence (Study Time, 2013) as a manufacturing company the tangible resources of Eveready are Land, Building of the company, machinery, equipments, vehicles, cash, inventories, debtors, and Eveready's product. Example: Eveready company located in India, therefore the building of the company is tangible resources

- Intangible Resources: This resource is the opposite from tangible resources such as Brand, Image, Copyright, Trademark and skills of Eveready's labor. Example: The name of 'Eveready' is the brand which is intangible resources.

Capability

Terms of capability refer to firm's capacity to deploy resources, usually in combination, using organizational processes, to produce a desired effect Stalk, et al. (1992)

Based on theory above, if Eveready able to fully utilize their resources and process into a output it means Eveready have capability. The greater utilization of resources is more potentially to gain creation in output which arise the value of the product itself.

Furthermore, the literature added to be able to fully utilize, Eveready needs to carry out a combination of resources and organization process. So besides resources, it is important for Eveready to have a structured work design in the company that has individuals or groups to be assigned for task and decision making. (Cliff Notes, 2013)

Core Competencies

Core competencies can be defined as a competence of a firm that came from a combination of firm resource both tangible and intangible and its capabilities to produce a product which is differentiate from other competitor. Company core competency product can be assumed as its signature product that has largest market share among other product. Relating to the case, Eveready core competency could be the Dry cell battery as its first product that lead Eveready to be a leader in battery market share, with the combination of carbon zinc and