Which strategic approach analyses internal competencies?

• A. Market led
• B. Traditional approach
• C. Resource
• D. Outcome economy

Answer: (C)

This question tests the resource-based view of strategy, which analyzes a firm’s internal resources and capabilities. It looks at what the organization owns and can do—tangible resources like plant and cash, and intangible ones like brand, patents, culture, and routines that combine these inputs into effective activities. The aim is to identify assets that are valuable, rare, hard to imitate, and non-substitutable, because such resources can sustain competitive advantage over time. This internal lens explains why some firms outperform others not just because of market conditions, but because of unique strengths the firm can leverage.