approach, 2017). For example, Nordstrom is an esteemed brand in the retailing industry, where they have the utmost income per square foot compared to any retailer in the country which is due to its hiring method, reimbursement patterns and culture, (Human resources: Human resource and competitive advantage, using the VRIO (value – rarity – imitability – organization) approach, 2017). The secret behind their success is, due to the fact that the company concentrated on each single sales executive who were considered to be the main key to contribute to Nordstrom’s competitive advantage (Barney & Wright, 1998). According to Barney et al (1998), the company provided prominent incentives-based emolument schemes which provided the employees to earn …show more content…
The competitive advantage provided by valuable and rare resources is merely temporary, unless there is a commodity/service that cannot be imitated by the competing firms, (The Question of Imitability the Temporary Competitive, n.d). The competitive advantage can be continuous only if the rivals face an expenditure shortcomings in reproducing the resources, (The Question of Imitability the Temporary Competitive, n.d). If the services/ commodity is easily reproduced by other firms in the industry, then that cannot contribute to the competitive advantage of the firm. Hence, it is important for the Human Resources to find an impalpable resource and potentiality which is difficult to copy or reproduce. Wilton (2014), states that valuable and unique abilities and resources, especially which are tangible are easily mimicked, than those which are nonphysical resources and capabilities. Goodwill, plans of action, exceptionally excellent employee motivating talents and management knacks are intangible resources, which are impractical to imitate, as per Wilton (2014). These resources and abilities contributes to the competitive advantage of a firm, along with value and