What defines rare resources in a business context?

In a business context, rare resources are defined by their limited availability and the fact that they are not controlled by many competing firms. This scarcity can create a competitive advantage, as possessing unique resources allows an organization to differentiate itself in the marketplace. These resources could include specialized technology, unique intellectual property, or access to exclusive contracts, which are not easily attainable by competitors.

Resources that are widely available to all firms or commonly found do not fit this definition, as they do not provide a competitive edge. Similarly, valuable resources that can be highly duplicated do not meet the criteria for rarity, as their duplication can nullify any potential competitive advantage. Therefore, the defining characteristic of rare resources is that they are not commonly possessed by other players in the industry, enabling the firm that owns them to leverage them effectively for strategic advantage.