Industrial organization (I/O) model vs Resource-based model
There are two models concerning how a company can develop a strategy to receive Above-Average Returns :
* Industrial organization (I/O) model and
* Resource-based model
Please, find information about these models in Sources of Corporate Information
Moody’s Manuals
Standard Corporation Descriptions
Value Line Investment Surveys
Dun’s Business Rankings
Standard & Poor’s Industry Surveys
Industry Week
Forbes, Fortune, BusinessWeek
1) What model do you recommend to use for developing a company strategy?
2) Why?
Please, give your recommendations for your “Client” using not more than five sentences.
Comment your peers’ ideas.
I would recommend using a resource-based model. A company that uses its resources and abilities can gain a competitive advantage over its competitors. When a company focuses internally on its resources it can think internally on how to further improve strategy. If a company chooses the Industrial Organization model, it focuses more on the external factors and could allow for less analysis on strategy of how to improve business.
