A resource-based strategy
A)is often based on cross-department combinations of intellectual capital and expertise.
B)uses a company's valuable and rare resources and competitive capabilities to deliver value to customers that rivals have difficulty matching.
C)is typically based on a stand-alone resource strength such as technological expertise.
D)refers to a company's most efficiently executed value-chain activity.
E)uses industry key success factors to provide a company with a core competence that rivals cannot effectively imitate.

Question

Quizplus · Accepted Answer

A resource-based strategy relies on a company's valuable and rare resources and competitive capabilities to deliver unique value to customers that competitors find difficult to match. This approach distinguishes the company and creates a competitive advantage. Option A is incorrect because a resource-based strategy does not depend on the combination of departmental expertise. Option C is incorrect because a resource-based strategy is not based on a stand-alone resource strength; rather, it considers a company's resources as a whole. Option D is incorrect because a resource-based strategy involves the efficient management of all value chain activities, not just one. Option E is also incorrect because a resource-based strategy focuses on a company's internal resources, capabilities, and strengths rather than industry key success factors.

A Resource-Based Strategy