resource based model

Resource-Based Model

A model that suggests a firm's unique resources and capabilities are the key to achieving above-average returns.

Resources

Inputs into a firm’s production process, including capital equipment, employee skills, patents, finances, and talented managers.

Tangible Resources

Physical assets that can be seen and quantified, such as buildings, machinery, and equipment.

Intangible Resources

Non-physical assets that are not easily quantifiable, such as brand reputation, patents, and intellectual properties.

Capabilities

The capacity for a set of resources to perform a task or activity in an integrative manner.

Core Competencies

Capabilities that provide a competitive advantage to a firm over its rivals.

Valuable Resources

Resources that allow a firm to take advantage of opportunities or neutralize external threats.

Rare Resources

Resources that are not widely possessed and are unique to a firm.

Costly to Imitate

Resources that other firms cannot obtain easily or face disadvantages when trying to obtain them.

Non-Substitutable Resources

Resources that have no practical equivalents, making them unique to the firm.