Please respond in an argumentative response to the post below. argument.

The structure-conduct-performance (SCP) theory (Porter, 1980) and resource-based (RBT; Barney, 1991) theory are the most significant strategies utilized to explain how firms generate economic profits. However, it is suggested that firms do not use both approaches at the same time within the same business as that can lead to the firms becoming unsuccessful as the theories are substitutes instead of complements of one another. While the SCP approach is a great means of determining external threats and opportunities for a firm, it differs in the way that it undertakes competitive advantage compared to the resource-based theory.

In the resource-based approach, firms generate profits by capitalizing on rare products as well as items that are expensive to duplicate. In opposition to external threats, resource-based strategies focus on a firm's strengths and weaknesses as well as its internal characteristics. Concentrating on costly-to-imitate and rare products allows firms to address consumers' needs more efficiently and effectively than competitors, helping firms to secure efficiency profits (Demsetz, 1973).

While a firm is considered to have achieved competitive advantage when it has generated a larger economic profit than at least some of its competitors within both theories (Peteraf & Barney, 2003), resource-based theory manages to attain sustained competitive advantage through its use of valuable, and costly-to-imitate products. This sets the approach apart from the structure-conduct-performance strategy whichfocuses on cultivating monopoly profits, increasing barriers to entry, and entering attractive industries. Instead of prioritizing methods of how to navigate industries, the resource-based approach suggests that the attractiveness of an industry cannot be examined independently of the resources and capabilities that firms have to compete.

In terms of why an understanding of strategic management is essential for employees, first, employees should have a strong understanding of strategic management as it helps them to provide further value to their clients such as being knowledgeable on tactics that can assist clients in achieving results and standing out against competitors. For example, if a public relations firm is looking to help a new client to increase brand awareness and develop a brand voice, they may start by researching their client's competitors and figuring out how the client can add unique value to their audience. This resource-based value could be the special projects that the client has worked on or the way that they interact with their audience (i.e., they use technologies that their competitors have yet to incorporate, or they interact with their audience in a way that is more personalized than other companies.) Also, having knowledge of strategic management can help employees to be more cognizant of how its company operates.

Additionally, possessing knowledge of strategic management can help an employee to understand their role within an organization because it can help them to know how they contribute to their company's overall success as well as assist them in being aware of the strengths and weaknesses of their organization and how they can leverage those strengths.