Question 1 What is the “resource-based” view of competitive advantage and what are the characteristics of resources that may yield sustainable competitive advantage? Explain. The resource based view of competitive advantage states that the resources here should have 4 major features which are- value , rarity, not easily replicable, and non substitutable. The competitive advantage can only be achieved if the resources satisfy the needs of the consumers and they are not easily imitable and replicable. The innovations should be such that they create resources for gaining sustainable advantage for the consumers. These resources are inputs which are used by various tools and mechanisms to develop sustainable competitive advantage. These are important to organizations because firms and organizations need to be unique and special in today’s highly competitive environment, where there are thousands of companies selling the same products.