The two broad categories of resources typically considered during planning and SWOT analysis are tangible assets and intangible assets. List two examples of tangible assets and two examples of intangible assets available to or used by an organization. Describe under what circumstances resources can be a source of competitive advantage.
What will be an ideal response?
Resources can take many forms, but they tend to fall into two broad categories:
• Tangible assets such as real estate, production facilities, raw materials, and so on.
• Intangible assets such as company reputation, culture, technical knowledge, and patents, as well as accumulated learning and experience.
Resources are a source of competitive advantage only under all of the following circumstances:
• The resources are instrumental for creating customer value-that is, they increase the benefits customers derive from a good or service relative to the costs they incur.
• The resources are rare and not equally available to all competitors. If competitors have equal access to a resource, it can be valuable but cannot provide a competitive advantage.
• The resources are difficult to imitate.
• The resources are well organized.
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What will be an ideal response?
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