Which of the following most accurately reflect a company's resource strengths?
A) its core competencies, competitive capabilities, and valuable intangible assets
B) sizes of its unit sales, revenues, and market share vis-à-vis those of key rivals
C) sizes of its profit margins and return on investment vis-à-vis those of key rivals
D) whether it has more primary activities in its value chain than close rivals and a better overall value chain than these rivals
E) whether it has a more profitable business model than close rivals

Question

Quizplus · Accepted Answer

A company's resource strengths are its core competencies, competitive capabilities, and valuable intangible assets. These are the resources that give a company a competitive advantage and are difficult to imitate by competitors. Sizes of unit sales, revenues, market share, profit margins, and return on investment are measures of performance, not resource strengths. The number of primary activities in a value chain and the overall value chain are also not necessarily indicative of a company's resource strengths. A more profitable business model may indicate resource strengths, but it depends on what is driving that profitability.

Which of the Following Most Accurately Reflect a Company's Resource