Resources Tangible resources: - Financial resources: o Low cash & account receivable o Relatively high capacity to borrow - Physical resources: o Production facilities with high capacities Intangible resources: - Information & knowledge: customer data, industry insights - Relationships: high customer awareness & accessibility - HR: high productivity Capability: lack capability to deploy resources which could have been used to generate profit. For example, with customer data and industry insights, the management team could have forecasted and produced products accordingly, but failed to do so, resulting in low sales and emergency loans 3 years in a row. - Our resources are valuable, but they are not rare nor inimitable, hence, they give competitive parity at best. o Some teams (B & E) had high automation rate (10) for some of its product lines, enabling them to have high contribution margin even in less profitable/lower priced segments like traditional and low o This resource is rare as they only two out of 6 teams had automation rate this high, giving them competitive advantage even though it is only temporary as it can be easily imitated
