Discuss how the external environment or resources and capabilities offer a sustainable competitive advantage and generate profit in each case.

Strategy Planning: Resources and Capabilities

Discuss which should be the primary basis for formulating strategy: The external market or the internal environment (firm’s resources and capabilities)?

Share an example of a company whose strategy has been based upon the external market and one that is based on a set of capabilities.

Discuss how the external environment or resources and capabilities offer a sustainable competitive advantage and generate profit in each case.