A company's resource and capability analysis:
A) represent its core competencies.
B) are the most important parts of the company's value chain.
C) signal whether it has the wherewithal to be a strong competitor in the marketplace.
D) give it an excellent ability to insulate itself against the impact of the industry's driving forces.
E) combine to give it a distinctive competence.

Question

Quizplus · Accepted Answer

Resource and capability analysis helps a company understand its strengths and weaknesses, which is essential to compete effectively in the marketplace. It helps the company identify its competitive advantage and whether it has the resources and capabilities required to stay ahead of its competitors. While resource and capability may contribute to core competencies and distinctive competence, they are not the same thing. Resource and capability analysis does not insulate a company against the impact of the industry's driving forces; instead, it helps a company devise strategies to navigate those forces effectively.

A Company's Resource and Capability Analysis