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Creating a Competitive Advantage by Building Resource Capability

The Case of Outback Steakhouse Korea

Innovation and Dynamic Management at the School of Hotel Administration at Cornell University, cae4{at}cornell.edu

The case of Outback Steakhouse Korea provides almost a textbook example of a five-point framework for competitive advantage. The framework suggests that companies must manage and blend resources in the following five categories: (1) financial resources, (2) physical resources, (3) human resources, (4) organizational knowledge and learning, and (5) general organizational resources (including brand names and relationships with stakeholders). Outback Korea has deftly combined resources in these five categories for considerable advantage and must continue to do so.

Key Words: Restaurant franchising • restaurant management • Outback Steakhouse Korea • competitive advantage • strategic management • competitive advantage • capabilities

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