Which statement best reflects the Resource-Based Model's view of competitive advantage?

• A. Competitive advantage comes from external opportunities alone
• B. Competitive advantage arises from financial leverage
• C. Competitive advantage arises from the firm's unique capabilities and resources
• D. Competitive advantage is unrelated to internal resources

Answer: (C)

Competitive advantage, from the resource-based perspective, comes from the firm’s own unique resources and capabilities that are valuable, rare, hard to imitate, and non-substitutable. When a firm possesses assets like specialized know-how, patented technology, distinctive processes, brands, or organizational routines that competitors cannot easily replicate, those assets generate sustained performance beyond rivals. This view says the internal bundle of resources—not external opportunities alone or financial structure—is what creates lasting advantage.

So the statement that best reflects this view is that competitive advantage arises from the firm’s unique capabilities and resources. Focusing only on external opportunities misses where lasting edge actually comes from, and tying advantage to financial leverage or claiming it’s unrelated to internal resources contradicts the fundamental idea of the resource-based approach.