Strategic resources are those key resources which are race, difficult to imitate and difficult to substitute.
Location of business can be a strategic resource or an ordinary one. For example, a prime location in high street is a strategic resource to a flagship retail shop of a luxury brand. However, a random location on a small street in a second tier city is not.
That location of a business is a strategic resource if it give you a strategic advantage. Otherwise it is a ordinary resource.
For example, if you have a coffee shop at the central square or at the central station that you have an important competitive advantage. Therefore this type of locations constitute a strategic resource. If you have the same coffee shop elsewhere you just have an ordinary resource. The location is not giving you a strategic advantage.
I would like to extend the area of the possible answer, considering the location of the company in a given city or country. The difference between a strategic resource and an ordinary one is given by the role played by that resource in obtaining a competitive advantage with respect to all the other competitors on the same market. That means that if we consider the market of a given city, all of these previous answers are correctly formulated. If we extend our view to a whole country, to have your company in a big city can offer some advantages over a small, non-significant city. The same can be the situation if instead of considering a city we consider a certain region. Just think that you would like to start a business in IT in USA. Where is the best to go with your company? Definitely in the Silicon Valley. Think that the best Publishing houses are located in big cities like New York, Boston, San Francisco, London, Sydney, Tokyo etc.
When we consider a multinational company and a global market, then location can also be a strategic resource if we think of a country like USA, UK, Japan, Germany, Italy, Hong Kong etc. Many companies take a serious view on this question when they develop and enlarge their market from a country, to a certain region or to the whole planet. Business location can become a strategic resource if and only if there is a clear vision about the business development and a good market strategy.
all of the above are equally right subject to the "operational definition" of a strategic resource being "rare, difficult to imitate, and substitution" which competitors cannot duplicate easily for competitveness. At the same the the "operational definition" of "ordinary" is part and parcel of "what and how you need to accomplish and achieve it vai your operational aspects of the location".
I think am in agreement with the notion that the location of a business becomes a strategic resource, if it gives you a competitive advantage over others. Hence, if the location doesn't, it becomes an ordinary resource.
Location of business is a strategic decision. It is a strategic resource when it represents a competitive advantage for your company. If you remember the Ansoff Matrix, it shows the decisions about market as a very important issue. In consequence, it is a decisión at corporate level. However, how this location represents a differentiation, then it is also a decision at the business level or competitive level.
location is a strategic resource. If you look into the literature of Retailing, location plays a very significant role in improving store satisfaction as well.
It is depend on your product. Because nowdays in global market it is not so actual. But for some products it could be strategic resource and competitive advantage. Sometimes location help attract not only clients, but employees, which could atract clients doing their work.
It depends on the impact that location will have on your competitive advantage. Any factor that improves such advantage, is a strategic one. In some case, though, it can be absolutely irrelevant, then is one more ordinary resource
The question is applicable to other resources as well and these include skills, materials and even technology.
The answer lies in response to a simple question: do these constitute assets to provide competitive advantage?
If some of the them, including location are such assets and provide competitive advantage, they are strategic in nature. And others are 'ordinary'.
I may also add that certain resources can be strategic today and 'ordinary' at a different time and vice- versa. We advise managements to rediscover their resources.
It can be both. To be strategic it must make a difference with the other companies and it can´t be matched. If competitors can have a location with similar conditions, then it is not critical.
Example: when rubber was natural, the Amazon was the only place on earth were you could find it. So if you were a rubber company you had to be there. Afterwards, Britain was able to obtain brazilian seeds and plant them in Malaysia. It meant an earthquake for brazilian industry because malaysian plantations were cheaper to run (in Brazil there were no plantations, people ("seringueiros") went to the jungle to obtain the natural rubber). For a rubber company at that moment, to have plantations in Malaysia meant a very big difference with brazilian rubber industry. So it was strategic.
The end of the story is that nowadays malaysian natural rubber industry is quite strong and Brazil imports natural rubber.
It is a strategic resource but sustainability of its strategic nature is subject to many factors. As long as it gets you or helps you get a competitive advantage, it remains a strategic resource.
I feel, location of a business is a strategic resource, as strategic location provides strategic as well as competitive advantage. Sustainability factors such as: environmental, social, economic and political are required to be taken care of, for continuance of the strategic advantage.
It depends on how the location was selected. If it was selected with the organization’s strategy in mind, it is a strategic resource because the location can have a significant impact on the organization’s overall performance and competitive advantage.
Location for a new facility or as an add- on necessity is always a strategic decision from all definitions of a business strategy. However, business operates in a dynamic environment and as such 'strategic' can become 'non-strategic' at a different time frame. I have also expressed so in similar words that strategic location is no longer strategic in business environment when it is no longer a competitive advantage or adds value.