Resources – A resource in an asset, competency, process, skill or knowledge. Resources may be tangible – land, buildings, P&M or intangible – brand names, reputation, patens, know-how and R&D. A resource is a strength which the co with competitive advantage and it has the potential to do well compared to its competitors.
Resources are the firm-specific assets useful for creating a cost or differentiation advantage and that few competitors can acquire easily. The following are some examples of such resources:
- Patents and trademarks
- Proprietary know-how
- Installed customer base
- Reputation of the firm
- Brand equity.
The strengths and weaknesses of resources can be measured by,
- Company’s past performance
- Company’s key competitors and
- Industry as a whole.
The extent to which it is different from that of the competitors, it is considered as a strategic asset.
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