Week 3: Chapter 3 Discussion

Chapter 3 of Strategic Management: Creating Competitive Advantages details the resource-based view of a firm, as the tangible resources, intangible resources, and organizational capabilities of a firm enable it to create and implement value-creating strategies. The financial, physical, organizational, and technological resources of a firm are considered to be tangible resources. The human, innovation, reputation, and culture resources of a firm are regarded as intangible resources. Organizational capabilities of a firm are the firm’s ability to successfully combine its tangible and intangible resources for the betterment of the firm. Grainger’s tangible resources include its extensive supply chain, large selection of SKUs, and access to its customers. Grainger’s intangible resources include its brand reputation and its technicians’ experience and skills. Grainger’s organization capability is its superior customer service. Grainger is able to use its technicians’ experience and skills to suggest the optimal products and services to best serve their customers, while their extensive supply chain ensures that those products and services can be contracted through their firm. Grainger’s superior customer service then further grows its brand reputation. It also incentivizes Granger to maintain or grow its supply chain and its access to customers, to ensure that its customer service continues to be regarded as superior.

Grainger's priority of serving customers is clearly portrayed on their website (Serving Customers – Grainger Industrial Supply).