M/S Test

Section A
Models-resource based model and industrial
organization
The resource-based model assures the firm to acquire various resources
and utilize them to achieve unique capabilities. To gain potential
advantage over the competitors, the firm needs to choose valuable, rare,
costly to imitate and no-substitute resources and capability. However,
resources such as human skills and creativity can be imitated and passed
over time. Thus they need to be integrated and managed with potential
capability so as to create customer value which can maintain good
customer relationships.

Industry (I/O) model is suggesting that firms to produce the standard

products and services at lower cost than the competitors or differentiate
ones to which the customers are willing to pay at premium prices. This
model when applied to firms can reduce the threat of new entrants by
differentiating their products. More customers are attracted by the unique
products in the industry and the firm can maintain its loyal customers by
offering differentiated products. Thus the model needs faster information
flowing about customer needs.