ï»¿1. What is a firm specific advantage?
Firm specific advantage (FSA) is a unique resources that are developed by a firm. FSA will distinguish the firm from competitors. FSA shows the strength of the firm and it will be the firmâ€™s comparative advantage in the market. To create FSA a firm needs to find resources, develop the resource over and over (which is called as routine), and combine all of the resources that they have. There are two types of FSA which are non-location-bound (transferable) FSA, and location-bound (non-transferable) FSA.
2. What is Hondaâ€™s FSA?
According to the case in page 61 (Verebeke, 2013) Honda has several FSAâ€™s. The transferble FSAs that Honda has, the ...view middle of the document...
The second one is because the firm has the knowledge about the local market. The next one is because the firm has found a unique way to operate that is local. The last one is because the firm has recombination capability that is hard to transfer.
5. What does that mean â€œlocation boundâ€?
Location bound means that the FSAare develop or only will give benefit to the firms in certain location. As explained in number 4, it is quite difficult to be transferred across the border and might be need some adaptation if the FSAs will be implement in other location.
6. Can you give example?
The example of location bound FSA is, Subway and Burger King in Indonesia. These firms are famous with their burgers and sandwiches, and have a lot of branches back to their home country in US. But eventually these two firms are not success in Indonesia since Indonesian do not like burger and sandwiches that much and both of these firms do not recognize this problem before.
Here,Burger King and Subway can gain success in US is because they have the knowledge about the local taste and the reputation in their home country. But once they tried to expand to Indonesia, they arenâ€™t as successful as in the home country becausE they donâ€™t really understanD the local taste of Indonesia and also their reputation will be different in Indonesia compare to their reputation in US.
7. What part of Hondaâ€™s FSAs are location bound?
Hondaâ€™s FSA that are location bound, the first one is the suppliers networks which is consist from three resources (suppliers of motorcycle parts, small supplier in Ohio, and other large suppliers). The second one is their plant location in Marysville, Ohio which has easy access to railroad transport and a pool of highly skilled labour.
8. What is the broader question that the field of International Business (IB) is concerned with?
The broader question that the field of International Business is concerned with is about how to transfer the competitive advantage of the firms to across the international border and take the available opportunity abroad, so the firms can create value and fulfill the stakeholder goals.
9. What does Verbeke mean when he talks about unique resources?
The meaning of unique resoures that Verbeke means is something that the firm is very good at, and it is the strenght of the company to compete with other competitors. In another terms the unique resources is the competitive advantage that the firm has to distinguish the firms with other competitor.
10. What unique resources does he list?
There are 7 resourcess which are :
1. Physical resources
2. Financial resources
3. Human resources
4. Upstream knowledge
5. Downstream knowledge
6. Administraive knowledge
7. Reputational knowledge
11. Can you think of an example yourself?
In Indonesia there is a company named Indofood which has a very good upstream knowledge and downstream knowledge. Indofood is a company that has specialization in producing...