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Internationa L Business Strategy: Resource Based View

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INTERNATIONA

L BUSINESS
STRATEGY
RESOURCE BASED VIEW

SUBMITTED TO DR. SALMA SOLIMAN


CONTENTS
1. INTRODUCTION

2. LITERATURE REVIEW

3. COMPETITIVE ADVANTAGES

4. JUSTIFICATION

5. COMPANY NEGATIVE COUNTRY REGION

6. CONCLUSION

7. REFERENCING
INTRODUCTION
ESET a well known company that is highly predilected for antivirus products. It is introduced
in Slovakia and now it is a global term. In this study, the critical evaluation of ESET’S sources
of competitive advantages that can be sustained for the future on the basis of VRIO
FRAMEWORK will be discussed. The company introduced there first product during the cold
war. The first antivirus product named NOD. It was not established on high scale but during
the passage of time it made its value in the large markets by offering attractive growths to
eneterpreneurs.
LITERATURE REVIEW

During solving the past problem of anti virus at a Solvak power plant a product was
launched named NOD which stands for hospital on the edge. They intended to form the first
anti virus product with graphical user interface and mixture of detection and prevention.
The process of building this programme took place in the living room from recording,
labelling and packaging diskkettes. They started by a free distribution and now it is highly
charged security network. Through the resource based view this study will identify the
competitive advantages of the company for sustain in future.
Resource based view is a framework that strive a use to find a competitive advantage of
firm’s resource. It examines the internal resources of the company and formulates the
strategy. VRIO FRAMEWORK can be implemented to identify the competitive advantages of
an organisation. The VRIO FRAMEWORK categorized the resources based on the traits of the
model. This distribution will later on help the organisation to identify the organisation that
are competitive advantages. There are four dimensions of VRIO framework-
 VALUABLE- A resource that adds benefit to the organisation. Although, a valuable
resource will not go with any other dimension. An organisation can only make it a
competitive advantage if it is not rare and hard to intimate.
 RARE- A resource that is isolated and not possessed by all the organisation. If the
resource is valuable and rare it is considered as competitive advantage.
 IMITABLE- A resource that is protected by legal means and it is hard to imitate by
organisations or other organisation.
 ORGANISED TO CAPTURE VALUE – A resource is organised in order to obtain value
for the organisation to confer any advantage of the company
COMPETITIVE ADVANTGES

It is the condition that made a company to produce the products of the equal value
and allows the productive material to enhance the sales and profit margins with
respect to other competitors. According to the ESET organisation the resources that
comes under the four categories of VRIO model that identifies the competitive
advantage of the resources of the organisation.
Valuable- The human resources of the organisation are the valuable asset. They
recruit the highly talented and motivated employees. They not only the hire the
highly recommended for there positions but also who can fit in the positive culture
of the company and maintain that. The virtue and modernisation leads to move the
company in long term. The cheerfulness that maintains the positive environment
and culture of the company. They believe that ‘the intelligent people develop
intelligent products for the intelligent customers’. They pay high scale salaries to
there employees in order to appointing the best. This is not a competitive
advantange as it is not rare and imitable. Only valuable resource cannot be the
competitive advantage.
Rare- The security network of the organisation is valuable and rare. The company is
providing a wide variety of software such as home users, small and medium sized
companies and large corporations. The mobile security, cybersecurity for apple
products. The IOS devices do not find cybersecurity easily and they provide it to the
mac of the apple. They offers the proactive protection with there all new
generations of business security.
Imitable- The ESET brought the security company setrnet for the information
expansion for security services. They acquired the comdom software that acclaims
the spam solutions. The R&D is available in all the continents and secured by the
legal means of all the continents.
Organisation- ESET is an organisation which is dependent on the research and
development. They are operated by a team of skilled programmers and researchers.
The foundation has not changed themselves from there kick off. As they focused on
the business opportunities in starting and now as well the opportunites are most
important to maintain the reputation of the company. Its growth from a ‘living
room’ company to a global face. The human resources of the organisation
functioned themselves to manage all the product lines with different secured
software.
JUSTIFICATION
The wide range of securities provided to the customers with new innovation of valuable
employees is the competitive advantage to sustained for the future of the company. As only
valuable customers alone cannot be competitive advantage it should be rare also. The
variations of software and applicability makes it more efficient from other competitors. As
discussed above they hire the innovative minds and works upon there software with new
technologies and have different R&D departments in Europe and many other regions will
lead to stand strong in future . Top management and employees are living there values and
have organised to maintain the reputation of the organisation
COMPANY NEGATIVE COUNTRY REGION

Initially, the company started as the LLC ( Limited Liability Company) and focused on
all the business opportunities with the antivirus software. At that time the
generation was not so developed so the demand was high for the applications for all
types of functions by the physical distribution but the usage of computers were still
high. By the passage of time in 1993 the Czechoslovakia strapped and the Czech
republic was created. Abruptly, the ESET lost its home country which was a larger
former for the company. Surprisingly, the Trnka was in a search of PC revue in
Slovak and started a coloumn ‘virus radar’ which helped the ESET to make there
reputation and space in the market. They introduced the new versions of NOD and
took the first winning award VIRUS BULLETIN in 1998. Which dedicated all the PC
users with the regular information about the computer malware. It sets the position
in magazines also. The ESET now wanted to make there position in international
market and they discussed with team. In 1999 established the LLC in united states
California with the support of Anton Zajac. It leads to the international upgradation
for ESET and formed the global centre being responsible for all the foreign market. It
ingrained itself as a ruling player in the industry by this mereger it not only valued
above all in its own country but also with other countries. It is the largest and
foremost IT market of the world which drives the US as a location for its centre
which also stimulates the efforts of innovation.
CONCLUSION
ESET is an research and development oriented company that works upon there
variations and developing the advanced anti-spam solutions.it has invented the all
new proactive protection securities for business. The initial stage was hard-won but
it survived and put itself on the top by the US mergers and lead to global market. In
the year 2000 the company showed remarkable growth. The global auditing
consulting company DELOITTE ranked it as the fastest growing companies.
REFRENCING
Smith, R., Lucco, J., Weaver, J. and Jackson, T. (2020). Explaining The VRIO Framework (With A
Real-Life Example). [online] ClearPoint Strategy. Available at:
https://www.clearpointstrategy.com/vrio-framework/ [Accessed 16 Feb. 2020].

Mirkovic, M. (2020). VRIO Framework: Creating Sustained Competitive Advantage. [online]


Executestrategy.net. Available at: https://www.executestrategy.net/blog/vrio-framework [Accessed 16
Feb. 2020].

Investopedia. (2020). Competitive Advantage: What Gives Companies an Edge. [online] Available at:
https://www.investopedia.com/terms/c/competitive_advantage.asp [Accessed 16 Feb. 2020].

Wu.ac.at. (2020). [online] Available at:


https://www.wu.ac.at/fileadmin/wu/d/cc/cee/3__Lehre/CaseStudies/ESET_Arnold_Schuh_2017.pdf
[Accessed 16 Feb. 2020].

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