Describe the differences and relationships between resources, capabilities and core competencies. How do these items relate to inside-out analysis?

What will be an ideal response?


Resources are basic inputs that a firm uses in its business, including cash for investment, useful technologies, access to equipment, and capable employees. Companies have both tangible and intangible resources.

Capabilities are best viewed as the integration of various resources in a way that boosts the firm's competitive advantage.

Core competencies are those resources and capabilities that provide an enterprise with a competitive advantage over its rivals.

An inside-out analysis catalogues the resources and capabilities available to the startup leading to core competency identification.  By using resources and capabilities in unique ways, a firm can establish its core competencies and apply them to obtain a competitive advantage.

Business

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