Creating Sustainable Competitive Advantage using Resource Based Review: Case study of Citigroup

Pang, Shay (2007) Creating Sustainable Competitive Advantage using Resource Based Review: Case study of Citigroup. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

This report shall focus on the creation of sustainable competitive advantage in Citigroup based on the Resource Based View approach. The main motivation behind this research is to understand what constitutes to Citigroup SCA from its humble beginnings as a small local bank to the world largest bank today. Through this research, I hope to unravel some of these possible sources of SCA in Citigroup.

Literature based on the RBV concept was used to propose a framework from which we analyze Citigroup. The framework identified that for a resource to be considered strategic, it will need to satisfy five criteria namely: Valuable, Rare, Inimitable, Organized and Durable. Based on this review, research questions were derived and the research method determined.

A focus group approach is used to collect data on stakeholders perceptions of possible sources of SCA. Observations of the work environment in formal and informal settings were used to supplement data collection. Lastly, public information such as annual reports and research papers were also used to identify key resources.

The research findings reveal that there are primarily four key resources which can be considered as strategic using the proposed RBV framework. These four resources which withstood the criteria set forth by the framework on the strategic-ness are Technology, Globalization, People and Culture. Further extension to the RBV approach explained how managers can manage the portfolio of resources to create value for the customers as well as the shareholders. In addition, we discussed how the RBV approach had evolved into a new paradigm of dynamic capabilities. Some of the practical limitations of the RBV were also discussed.

Lastly, we conclude that these strategic resources identified contributed to the SCA of Citigroup. It is through the active combination of resources between the strategic and non strategic factors that enabled Citigroup to maintain a sustained competitive advantage over its competitors.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 28 Apr 2008
Last Modified: 21 Mar 2022 16:03
URI: https://eprints.nottingham.ac.uk/id/eprint/20882

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