Resource-Based Theory

Resource-Based Theory is a way of understanding how companies succeed by focusing on their unique assets and capabilities. It suggests that a company's competitive advantage comes from resources that are valuable, rare, hard to imitate, and well-organized to be exploited. These resources can include things like skilled employees, proprietary technology, strong brand reputation, or unique processes. By effectively managing and developing these resources, a company can deliver better value than competitors, leading to sustained success. Essentially, the theory emphasizes leveraging internal strengths over external factors in the marketplace.