The Resource-Based Theory

The Resource-Based Theory suggests that a company's success relies on having unique, valuable resources—such as skilled employees, proprietary technology, or strong brand reputation—that competitors cannot easily copy. These assets provide a competitive advantage, enabling the company to outperform others in the market. Essentially, it emphasizes internal strengths and capabilities as the key drivers of long-term success, rather than solely focusing on market conditions or external factors. By developing and leveraging these distinctive resources, a company can sustain its growth and profitability over time.