Resource and capability analysis is a powerful tool for

assessing the main competitor's core competencies and R&D investments

showing the$-$balance between the firm's financial resources and its capability to obtain additional capital for expansion

showing how much profit is earned on each dollar spent on R&D$,$ as well as the number of competitive assets in comparison to the market leader

insulating itself against the impact of the industry's driving forces

sizing up the company's competitive assets and determining whether they can provide the foundation necessary for competitive success in the marketplace