Industrial organization (I/O) model vs Resource-based model

There are two models concerning how a company can develop a strategy to receive Above-Average Returns :

* Industrial organization (I/O) model and

* Resource-based model

Please, find information about these models in Sources of Corporate Information

 Moody’s Manuals

 Standard Corporation Descriptions

 Value Line Investment Surveys

 Dun’s Business Rankings

 Standard & Poor’s Industry Surveys

 Industry Week

 Forbes, Fortune, BusinessWeek

1) What model do you recommend to use for developing a company strategy?

2) Why?

Please, give your recommendations for your "Client" using not more than five sentences.

Comment your peers' ideas.

I would recommend using a resource-based model. A company that uses its resources and abilities can gain a competitive advantage over its competitors. When a company focuses internally on its resources it can think internally on how to further improve strategy. If a company chooses the Industrial Organization model, it focuses more on the external factors and could allow for less analysis on strategy of how to improve business.