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MS Test

The resource-based model suggests that firms acquire valuable, rare, costly to imitate resources and capabilities to gain a competitive advantage over rivals. However, some resources like human skills can be imitated over time, so firms must integrate and manage resources with capabilities to create customer value and maintain relationships. The industrial organization model proposes that firms produce standard products at a lower cost than competitors or differentiate their products, allowing customers to pay premium prices. This differentiation can reduce threats from new entrants and attract more loyal customers through unique offerings tailored to information about customer needs.

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Sheik Zaid Rahman
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51 views4 pages

MS Test

The resource-based model suggests that firms acquire valuable, rare, costly to imitate resources and capabilities to gain a competitive advantage over rivals. However, some resources like human skills can be imitated over time, so firms must integrate and manage resources with capabilities to create customer value and maintain relationships. The industrial organization model proposes that firms produce standard products at a lower cost than competitors or differentiate their products, allowing customers to pay premium prices. This differentiation can reduce threats from new entrants and attract more loyal customers through unique offerings tailored to information about customer needs.

Uploaded by

Sheik Zaid Rahman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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M/S Test

Section A
Models-resource based model and industrial
organization
The resource-based model assures the firm to acquire various resources
and utilize them to achieve unique capabilities. To gain potential
advantage over the competitors, the firm needs to choose valuable, rare,
costly to imitate and no-substitute resources and capability. However,
resources such as human skills and creativity can be imitated and passed
over time. Thus they need to be integrated and managed with potential
capability so as to create customer value which can maintain good
customer relationships.

Industry (I/O) model is suggesting that firms to produce the standard


products and services at lower cost than the competitors or differentiate
ones to which the customers are willing to pay at premium prices. This
model when applied to firms can reduce the threat of new entrants by
differentiating their products. More customers are attracted by the unique
products in the industry and the firm can maintain its loyal customers by
offering differentiated products. Thus the model needs faster information
flowing about customer needs.

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