4.2 Analysis of resources, capabilities and core competencies Select a business strategy that details valuable resources and distinctive competencies, develop a strategy for all resources and capabilities and ensure that they are all used and exploited, and it is essential to create and regenerate valuable resources and distinctive skills. The analysis of resources, capabilities and core competencies describes the external environment that is likely to change rapidly. Based on this information, a company must be prepared, know its internal resources and capabilities, and come up with a more secure strategy. Moreover, resources and capabilities are the main source of profitability. Resources involve intangible, tangible and human resources. Capabilities describe the environment and the strategic environment. Core competencies include technical knowledge and abilities. In this section, we will attempt to describe in detail the three segments of resources, capabilities and core competencies. 4.2.1 Tangible Resources Tangible resources include four different areas of importance. Tesco currently has strong financial, technical and physical resources and moderate organizational capabilities. Financial Resources: Tesco maintains strong financial guidance as outlined below. • Top Drive segment revenue growth in the third quarter of 2011 was 83.6 million. Increase derived from increased sales, operating days for the rental fleet, as well as sales and after-sales service. Tubular services revenue growth for the third quarter of 2011 was 38.1 million, an increase of 9% compared to the previous quarter. This increase stems from growing customer demand for shale resources. Casing drilling revenue in the third quarter of 2011 was 5.3 million, compared to 3.9 million in the 2011 quarter. • Higher operating margin...... middle of paper ... ...13, the company acquired the automated gateway technology from Custom Pipe Handlers Canada, Inc. (nytimes.com, 2014).4.2.4 Summary of Tesco's Resources and CapabilitiesIn summary, Tesco Corporation has strong resources and capabilities. In the tangible section there is a strong presence of financial, technical and physical resources. , there is a moderate presence of organizational capacity. In the intangible section, Tesco Corporation has a strong presence in human resources, innovation and reputation. Additionally, Tesco has strong valuable capabilities. Key skills are essential to the sustainability of a business. Tesco has a high level of capabilities. They are important in the areas of design, technology, training and research and development. Additionally, Tesco has a superior manufacturing presence.