Step-by-step


1. Define your key resources.

2. Define if the resources are valuable.
Do they enable firms to exploit opportunities or defend against threats? Do they help organizations to increase perceived customer value by increasing differentiation and/or decreasing the price of the product?

3. Define the resources’ rarity.
Only acquired by one or few companies? Otherwise, firms can use identical resources to implement the same strategies and no superior performance can be achieved.

4. Define how costly it is to imitate resources.
It is hard to replicate:
     a) resources developed due to historical events or over a long period,
     b) if particular resources can’t be identified,
     c) if resources are based on a company’s culture or interpersonal relationships.

5. Define if they are organized to capture value.
Are the management systems, processes, policies, organizational structure, and culture able to fully realize the potential of resources & capabilities?