A resource is valuable if it helps a firm increase the perceived value of
its product or service in the eyes of consumers, either by adding attractive features or by lowering price because the resource helps the firm lower its costs. By raising the perceived value of the product, the resource increases the firm’s revenues, in turn increasing the firm’s profitability (assuming costs are not increasing). If the resource allows the firm to lower its cost, it also increases profitability (assuming perceived value is not decreasing)