The uniqueness of a firm's resources and capabilities is the basis for a firm's strategy and determines its ability to earn above-average returns under the I/O view. A. TrueB. False

Question

Jasmine

Business

14 June, 12:40

The uniqueness of a firm's resources and capabilities is the basis for a firm's strategy and determines its ability to earn above-average returns under the I/O view. A. TrueB. False

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Carly · Answer 1

B. False

Explanation:

I/O model takes into view the external environment of the firm and its ability to earn above average returns.

In external environment analysis, we see the industry of the firm. The best practices and strategies of the industry are adopted by the firm to succeed in the future. The industry and its features in which the firm is panning to enter is the major factor deciding the firm's success in the industry.

Hence, arranging all the resources necessary for implementing the industry successful strategies becomes the key under I/O model.

Note - I/O = Industrial Organization