Question

Key resources can be defined as the most critical asset needed to make the business model work. "Every business model requires key resources, and it is only through them that companies generate Value Proposition and Revenues"(Key Resources. (n.d.) Just recently I bought tires for my car. While looking at places that sell tires, I looked for the best quality tire at the best price. I also considered any available promotions. One possible competitive advantage Tyres may have is a quality tire at a reasonable price. Like most anything, there are quality products and low-quality products, and tires are one of those products. Another aspect the sets Tyres apart is the fact that they only sell in the personal vehicle market. The personal vehicle market gives Tyres a more specific market to cater to.

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Answer 1

Key Resources is the building block describing the most important assets needed to make a business model work. Every business model requires them, and it is only through them that companies generate Value Propositions and Revenues. Key resources can be physical, financial, intellectual, or human.

Physical Resources: Physical resources are those resources which makes your organisation work. They are the tangible assets in your organisation that can be employed and use for their best performance and tasks to be performed. These physical assets require high financial resources and gives high results in the profitability too. Example: Land, Machine etc.

Financial Resources: Financial Resources are those resources from which the funds of your company are coming from. These are the key sources of your firm's funding. It could be in the form of Equity shares, debentures, bond etc. A balance has to be maintained between owner's and borrowed funds.

Intellectual Resources: Intellectual Resources are the intangible resources which a company uses for the working of the organisation. One good example of this would be artificial intelligence that a company can use to track the demand and supply of the organisation. All the softwares and applications running are the intellectual resources.

Human Resources: Human resources are the employees which a company has to complete their operations. A company is made entirely of its people, thus, human resource is the most important element in the organisation which makes the goals achieved and targets are met by this.