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RESOURCE-BASED MODEL OF ABOVE-AVERAGE RETURNS

STRATEGY FORMULATION AND IMPLEMENTATION

The final step in the Resource-Based Model for Above-Average Returns

RESOURCES

LOCATE AN ATTRACTIVE INDUSTRY

COMPETITIVE ADVANTAGE

This step is utilized to identify a firm's strengths and weaknesses

Can only be gained if a firm is able to utilize its resources and capabilities to outperform its rivals

This step is vital because the industry the firm is part of can dictate just how much success they have

CAPABILITIES

Identifies the capacity of the firm to use its resources in the most productive manner

By Emmanuel Woghiren

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