strategic factor market

A concept of the market of factors from which competitive advantage may be sought and purchased, such as the markets for companies (Barney, 1986b). Whenever the implementation of a strategy requires the acquisition of resources, a strategic factor market develops. If these markets are perfectly competitive, no competitive advantage can be gained by purchasing the factors in this market.

Barney concludes that environmental analysis, by itself, cannot create the required unique insights, while in some circumstances the analysis of a firm's unique skills and capabilities can.