Apple Earn Average Returns Used Industrial Organization Model Resource Based Model Q34192166

How can Apple earn above-average returns if they used both theindustrial organization model and the resource-based model?

Expert Answer

In case of industrial organization model, the organizationfocuses on the external environment and develops internal strengthsin order to meet the external environment. The steps followed inthis case are

• Analyze the external environment
• Choose an attractive industry
• Formulate a strategy
• Develop assets and skills
• Implement the strategy
• Earn above average returns

In case of resource-based model, an organization focuses on itsown strength and weakness and uses the competitive advantage it hasin order to achieve their goals. The steps followed in this caseare

• Identify resources
• Identify capabilities
• Create competitive advantage
• Identify attractive industry to apply
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