Sagan Sciences is implementing a resource$-$based model of above$-$average returns as their strategic management approach. They have already identified the firm's resources and determined the firm's capabilities. What would this next step be for Sagan Sciences?

Develop or acquire assets and skills needed to implement the strategy.

Locate an attractive industry.

Determine the potential of the firm$$s resources and capabilities in terms of a competitive advantage.

Select a strategy that best allows the firm to utilize its resources and capabilities relative to opportunities in the external environment.