Firms achieve strategic competitiveness and earn above-average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers

Resources, capabilities, and core competencies are the foundation of competitive advantage

Firms should seek to continually develop new core competencies because all core competencies guarantee above-average profit

The value of tangible assets, such as the firm’s borrowing capacity and its physical plant, is high because these assets can be easily leveraged to derive additional value

Eavesdropping is an ethical way to obtain information about competitors’ actions

The UK’s exit from the EU and political upheavals in Egypt, Tunisia, Libya, and Syria illustrate uncertainties in the political/legal segment of the general environment that could affect the performance of business firms

When Delta Air Lines wants to study Continental Airlines, it must examine both Continental and its complementor, Star Alliance

Chipotle linked fresh ingredients with the marketing and training of employees to build customer service as a capability. This example illustrates the way in which resources must be combined in order to form capabilities

By themselves, resources can allow firms to create value for customers as the foundation for earning above-average returns

An example of a government policy barrier to entry would be a scenario in which the Antitrust Division of the Department of Justice disallows a merger because it creates a firm that is too dominant and would thus create unfair competition