The beginning of this paper starst with introduction of the concept of strategy, as well as phases used in ususal strategic process. The main focus is on representing the resource based view as part of the strategy formulation process. Resource based view has been developed under the theories of one school of strategic management, known as The Learning School.in order to get insight into the full significance of the resource based view, it has been introduced along with the Positionig School, that is contrastive in its approach to strategy formulation process. Even though approaches are opposite, both schools, agree that competitiveness is of a certain company is main determinant of its success, or failure. The rest of this paper indroduces models that have shaped the process of strategy formulation by using internal analysis approach as a starting point, and exploiting company's strengths to achieve competitive advantage in the industry in which they compete. The backbone of this paper are the imposrtance of resourses and competences of a company, implicit knowledge that has an evolving power to upsurce the tangible resources, and the notion of the core competences as sources of long term and sustainable competitie advantages, which all have been developed under the resource based view. Moreover, in order to assess the qualitative saspect of core competences, VRIO framework is introduced. The papaer stresses the importance of the contribution to the development of this approach of strategy formulation that has been brought by methods and models developed by its most appreciated representatives Jaay Barney, Gary Hamel, and C.K. Prahala. Their methods and models have helped in explaining the main aspects of resource based view in function of generating competitive advantage, and also sustainable competitive advantage. The end of the paper demonstartes the use of the resource based view and its models into the process of strategy formulation on the examples of selected companies.