It is important to have core competencies to grow and establish strong positions in complementary markets. For example, Dell has taken its core competencies in the assembly and sale of PCs and has moved them into the market for computer servers and other electronic devices. This process of adapting a company’s core competencies to exploit new opportunities is referred to as resource leverage.
Resource leverage attempts to have the most out of the available resources to get a much greater return on investment. It is undoubtedly energizing.
Resource leverage means getting the most from the available resources and taking complete advantage of the strengths.
Basically, business management can leverage its financial and non-financial resources in five ways:
- By focusing them more effectively on key strategic objectives;
- By accumulating them more efficiently;
- By complementing one type of resource with another for creating greater order value;
- By conserving resources whenever and wherever possible;
- By recovering them from the market in the shortest probable time.
Use of the term in Sentence:
- You can think of resource leverage personally as well as organizationally by conducting a SWOT analysis.
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