The assumptions of the industrial organization model and the resource-based model are contradictory. Therefore, organizational strategists must choose one or the other model as the basis for developing a strategic plan

The industrial organization (I/O) model suggests that above-average returns are determined primarily by the firm’s unique internal resources rather than by external capabilities

Strategy formulation and implementation must be simultaneously integrated for a successful strategic management process

Since the 1980s, the basis for competition has shifted from intangible resources to hard assets

The rapid rate of technological diffusion has increased the competitive benefits of patents

Strategic leaders must have a strong strategic orientation while simultaneously embracing change in the dynamic competitive landscape

Economies of scale and huge advertising budgets are more effective in the new competitive landscape than they were in the past

The goal of strategy implementation is to develop a permanent competitive advantage

Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy

The uniqueness of a firm’s resources and capabilities is the basis for a firm’s strategy and its ability to earn above-average returns under the industrial organization (I/O) model