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 firm’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 Honda’s FSA?
According to the case in page 61 (Verebeke, 2013) Honda has several FSA’s. The transferble FSAs that Honda has, the first one is their CVCC (Controlled Vortex Combustion Chamber) engine, that helped Honda to fulfill the market demand in US for more fuel-efficient car through their Civic model and has opened a new oppotunity for Honda to build their new plant in US.
The second one is the manufacturing system of Honda which is more efficient compare to the Ford system. Honda used less presswork, more integrated welding system, and has a better real cost-performance.
The third FSA that Honda has is their management. Honda has a flexible management in responding new opportunity and challenge that lead them to success in new market.
3. What basic but important distinction does Verbeke make?
Basic but important distinction that Verbeke make is that every firms needs to develop their own unique resources. There some some types of resources which are :
a. Physical resources
b. Financial resources
c. Human resources
d. Upstream knowledge
e. Downstream knowledge
f. Administraive knowledge
g. Reputational knowledge
4. Why are some FSAs location bound?
Some FSAs are location bound because it is hard to transferred across the border. There are four types of location-bound FSAs. The first one is because the firm is using the stand alone resources that connected or linked to the location...