Business Challenges 1.1

Competitive Advantage and Globalization

Competitive advantage implies the creation of a system that has a unique advantage over competitors. With the advent of globalization, the competition has become stronger and can be located anywhere in the world. The idea behind competitive advantage is to create customer value in an efficient and sustainable way. One approach to address this issue would be the use of resource-based theories of competitive advantage.

Resources are not simply raw materials but include all the inputs, such as intellectual capital, necessary to produce a good or service. Consider this as you address globalization strategies for Fortune 500 firms in this assignment. Be mindful of constraints, such as transportation costs and cultural barriers, as you complete this assignment.

Review the article “Resource-Based Theories of Competitive Advantage: A Ten-Year Retrospective on the Resource-Based View” by J. B. Barney from the readings for this module.

Based on your analysis of this article and other readings for this module, respond to the following:

• Explain how resource-based competitive advantage drives globalization strategies for Fortune 500 firms.
• Why are application of project management principles critical to effective business operations?

Substantiate your response with properly cited examples. Write your initial response in 300–500 words. Apply APA standards to citation of sources.