Final answer:
Businesses achieve competitive advantage by focusing on core competencies, using the VRIO framework to evaluate resources and capabilities, and engaging in competitive benchmarking. Specializing in a few core products or services often provides an edge over competitors. Key factors such as workforce education and specialization in the value chain contribute to comparative advantage.
Step-by-step explanation:
To achieve competitive advantage through resources and capabilities, businesses can utilize strategies such as core competencies, the VRIO framework, and competitive benchmarking. Core competencies refer to unique strengths and abilities that a company excels in, which can drive competitive advantage. The VRIO framework is a tool to evaluate the value, rarity, imitability, and organization of resources and capabilities, which helps to determine potential competitive advantages. Competitive benchmarking involves comparing a firm's processes and performance metrics to industry bests or best practices from other industries, aiming to identify areas for improvement.
As seen in the case of businesses focusing on a few core products or services, those that leverage their core competencies often outperform competitors with a wider scope. This specialization can create a distinct competitive edge. Additionally, factors such as workforce education, knowledge bases, and specialization within parts of a value chain can contribute to a firm's comparative advantage, underscoring the importance of investing in key resources and capabilities.