FSAs are firm specific resources/capabilities that are needed to successfully compete against rival organisations. They can be tech-/ or knowledge based and are used to get and advantage i.e. in production or m1. What is a firm specific advantage?
FSAs are firm specific resources/capabilities that are needed to successfully compete against rival organisations. They can be tech-/ or knowledge based and are used to get and advantage i.e. in production or marketing.
2. What is Honda’s FSA?
Honda has a large selection of automobiles and motorcycles that covers a wide range of stakeholders worldwide
3. What basic but important distinction does Verbeke make?
He distinguishes between non-location-based FSAs and location-based FSAs
4. Why are some FSAs location bound?
They are unique to the location thus can not be transferred across borders.
5. What does that mean “location bound”?
It means that the Firm specific advantages can only be exploited in a specific location (a country, a city).
6. Can you give an example?
In 1996, the Japanese Firm Kao tried to expand to Europe and America. The reason for their failure was the dominant domestic position of the firm within Japan. The firm owned a wholesale distributor, called Hansha that only distributed Kao’s products. Given this fact, Kao had the ability to supply small shops and prevent outsider from entering the market. Furthermore, Kao could easily receive privileged information on consumers’ shopping habit. These circumstances were neither given in Europe nor America.
7. What part of Honda’s FSAs are location bound?
Honda profits from cheap labour and the Research and Development (R&D) centres.
8. What is the broader question that the field of International Business (IB) is concerned with?
How to create FSAs that can be transferred across borders while creating value – therefore being
successful in expanding to a foreign country.
9. What does Verbeke mean when he talks about unique resources?
He talks about the ability of a firm to process / combine resources better than other firms giving it a significant advantage on the market.