An organization’s resources and cap

An organization’s resources and capabilities can be placed on a continuum to the extent they are durable and can’t be imitated (that is, aren’t transparent, transferable, or replicable) by another firm. This continuum of sustainability is depicted in Figure 5–1. At one extreme are slow-cycle resources, which are sustainable because they are shielded by patents, geography, strong brand names, or tacit knowledge. These resources and capabilities are distinctive
competencies because they provide a sustainable competitive advantage. Gillette’s razor technology is a good example of a product built around slow-cycle resources. The other extreme includes fast-cycle resources, which face the highest imitation pressures because they are based on a concept or technology that can be easily duplicated, such as Sony’s walkman. To the extent that a company has fast-cycle resources, the primary way it can compete successfully is through increased speed from lab to marketplace. Otherwise, it has no real sustainable competitive advantage