elaborate a replied to this post on a discussion board have to be 100 word or more The I/O Model…

elaborate a replied to this post on a discussion board have to be 100 word or more

The I/O Model of Above-Average Returns explains the external environment’s dominant influence on a firm’s strategic actions. The model specifies that the industry in which a company chooses to compete has a stronger influence on performance than the choices managers make inside the organizations do. Based on its four underlying assumptions, the I/O model prescribes a five-step process for firms to achieve above-average returns: Study the external environment-general, industry, and competition to determine the characteristics of the external environment that will both determine and constrain the firm’s strategic alternatives. Select an industry ( or industries) with a high potential for returns based on the structural characteristics of the industry. Based on the characteristics of the industry in which the firms choose to compete, strategies that are linked with above-average returns should be selected. Acquire or develop the critical resources-skills and assets needed to successfully implement the strategy that has been selected. The I/O model indicates that above-average returns will accrue to firms that successfully implement relevant strategic actions that enable the firm to leverage its strengths (skills and resources to meet the demands or pressures and constraints of the industry in which they have elected to compete.

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