Even though Easy Speak Inc. and KM Com Inc. operate in the same industry—telecommunications—each firm has a different and loyal customer base. While Easy Speak Inc. attracts young students and professionals through its efficient network coverage and pricing, KM Com Inc. attracts elderly customers solely due to its excellent customer service. Thus, both firms draw their strengths from distinct resource bundles. Which of the following assumptions of the resource-based model of competitive advantage does this scenario best illustrate?
A. resource curse.
B. resource mobility.
C. resource depletion.
D. resource heterogeneity.

Based on the information provided within the question it seems that the resource-based model of competitive advantage that best illustrates this scenario is called resource heterogeneity. This term refers to whether a company has control of a resource or a capability, which capabilities can be owned by various companies in the same market, therefore not being a key aspect in a competitive advantage as opposed to a resource. In this scenario both companies have a resource, which is the population or age ranges that are loyal customers to each company and in which the other company does not have, thus giving them a competitive advantage.

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