Final answer:
The two models used in Industrial Organization are the Industrial Organization model, which focuses on external factors like market structure, and the Resource-Based model, which looks at a company's internal resources and capabilities for competitive advantage.
Step-by-step explanation:
The two models used in Industrial Organization are the Industrial Organization model and the Resource-Based model. The Industrial Organization model focuses on external market factors and the structure of the industry as determinant factors for a company's strategy and performance. On the other hand, the Resource-Based model looks internally at a company's unique resources and capabilities as key to gaining a competitive advantage. This model takes a more holistic view of the company, suggesting that unique resources, if valuable, rare, inimitable, and non-substitutable, can provide a sustainable competitive advantage.
These two models represent different perspectives on how businesses should organize and strategize. The Industrial Organization model is akin to the External-Focused model mentioned in part of the question, emphasizing large-scale issues and the industry environment. Conversely, the Resource-Based view compares to the Internal-Focused model, which examines the detailed aspects of a company's internal resources and capabilities.