THE EFFECT OF RESOURCE INVESTMENT STRATEGY AND BUSINESS MODEL STRUCTURE ON VALUE CREATION IN RETAIL COMPANIES

Abstract

Introduction: Barney's Resource-Based View theory and Porter's Value Chain Analysis are key theories in researching business resource investment strategy and business model structure. Understanding how they could work in tandem is important to provide further insight into these topics. This will be a preliminary study given the limited data availability. Objective: The primary objective of this study was to better understand the practical implications of Barney's Resource-Based Value theory and Porter's Value Chain Analysis when used together. Methods: A case study approach was employed to evaluate the connection between resource investment strategy and business model structure on value creation. The three cases were in the retail pet specialty industry (PetSmart LLC, Petco The Health and Wellness Co., and Chewy Inc.). Given the small sample size, this is a preliminary study. Results: This study found that resource investments that provide higher levels of competitive advantage may generate increased customers and profit. Secondly, resource investments utilized for primary value chain activities could produce stronger value creation effects (customer and profits). Finally, valuable resources that offer sustained competitive advantages and are invested in primary value chain activities could have the most impact on acquiring customers and increasing profit. Discussion: Companies could benefit from investing in resources that have the potential to offer sustained competitive advantages and utilizing them to strengthen primary activities. By doing so, they may benefit from increased profit and customers. Additionally, companies could benefit from prioritizing omnichannel integration as it might allow them to maximize revenue and improve customer experience.