Competitive positioning based view of strategy Vs Resource Base view of Strategy article4

Competitive positioning school of Business Strategy and Resource based Business strategy are two very important schools of thought in business management, vying with each other for superiority. A detailed look–into the two strategies would enable us to study the two contrasting theories.

Both competitive positioning school of Business management and Resource Based view  of Business  Management have their strengths and weaknesses.

 The theories in fact cannot be termed as rivals to be discussed with similarities and differences. The process of business from manufacture to marketing consists of many stages. While the first theme is applicable to some stages, the second one applies to the other stages. One steps in where the other leaves. For example manufacturing stage lays emphasis on resource-based view while marketing stage gives importance to competitive positioning. However it does not mean that the other school of thought does not have a place in the particular stage. To give an example , the  core values, which form the backbone of the competitive positioning should be borne in mind at every stage.

Based on the literature, for the management of for-profit organizations in developed economies of the world in 21^st century, the competitive positioning theory holds sway over resource-based view of management. Monopolies in business are becoming rarer and rarer. This is because the resources which meet the norms under RBVM are no more as isolated earlier. Access to these resources or duplication of the same due to technological advancement is putting a strain on the survival of the theory. The best example for this is the invasion of the World market in almost all sectors by Chinese goods at very competitive prices. Another example is the resource of skilled manpower in Software industry which became uncontrollable due to attrition even for the biggest firms. It is becoming more and more evident that containment of important resources is becoming more and more difficult with passage of time.

  

While a study of contrast between the two theories is quite absorbing, it cannot be concluded that one is substitutable by the other. Each theory stands grand in its own way. While resource –based view held sway in the by-gone era when it was easy to contain scarce resources, increasing technological developments and globalization gradually shattered the monopolistic practices. The way thousands of reputed companies known for their quality products closed shop in the last few years clearly proves the fact that it happened because of their inability to adapt to competitive positioning strategy in their business. The times ahead seem really rosy for the competitive positioning theory and resource–based theory may be relegated to pages of history as an antiquity.
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Other articles on corporate strategy found at 

 Competitive positioning of strategy at 
http://assignmentdesign.com/competitive-positioning-of-strategy-corporate-strategy-assignment-help-by-assignmentdesign.com.aspx


Resource-based view of Strategy at http://assignmentdesign.com/blog/resource-based-view-of-strategy-in-business/



Comparison between competitive and resource-based views of strategy
http://assignmentdesign.wordpress.com/2011/08/06/comparison-between-the-resourced-based-view-of-strategy-and-the-competitive-positioning-based-view-of-strategy/