Industrial Organization Model and Resource-Based Models for Above-Average Returns These models are in place as a measuring tool which requires Nike to think outside of the box and to focus on an external perspective on how a competitive company could influence your business strategy overall which allow Nike to see above-average yields. To be successful, Nike should …
The industrial organization focuses on competitors and other aspects of the industry that are appealing. The resource-based model, on the other hand, concentrates on the organization's internal resources. The resource-based approach focuses on organizational analysis, while the industrial organization focuses on market environmental analysis.
Contrary to the Industrial/ Organization Model, the resource-based vision is based on the idea that a company's internal environment, including its resources and efficiencies, is more crucial for the decision of strategic policies than is the external environment (Kotelnikov, 2011). Pepsi is also not in short of strategic efficiencies, resources and capital.
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