Determining Competitive Positions Of A Company Commerce Essay

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I will be looking at this statement from two different perspectives. One as an inside out perspective where the core competences of a company is the basis or platform of strategic thinking (Gary Hamel and C. K. Prahalad (1990); Barney (1991) ) and the other perspective will be as a outside- in view, where the industry and the "adaption" to it is the central platform of strategic thinking (Porter). I will do this with basic reference to the resource based view on the inside out side and Porter five forces on outside in argument. I will briefly describe the theory's and differences and critically analyse them discussing limitations and criticism of the theory's. Furthermore I will relate these theories to contingency theory and argue for the relevance of this theory as my thesis. The main statement of the assignment is too simplistic. In my view it's a combination of internal and external factors that determines the competitive position of a company.

The literature on strategy and strategic management is vast. In management literature 'strategy' made its entry in the 1960s, primarily because Chandler (1962) used the term in the title of a book on management. Until that time the concept had only been used in connection with the military leadership. Management researchers and writers use the term strategy in as many ways as it is used in everyday speech. There have been several attempts in literature to categorize strategy perspectives or schools of thought (e.g. Mintzberg 1990 and Whittington 2001). But definitions of strategy have not been executed frequent and the researchers/writers who have been in this area have focused mainly on describing different views rather than to show or analyze the correlations between them. In the article "Strategic Attributes and Performance in the BCG Matrix--A PIMS-Based Analysis of Industrial Product Businesses" (Donald C. Hambrick, Ian C. MacMillan, Diana L. Day Source) there are three groups/levels of discussions in literature of business strategy: 1) Normative proposition (which strategic actions make sense under different conditions) 2) Empirically based (universal laws of strategy) and 3) Empirically based (strategy must be highly situational). The above mentioned statement would be categorized to XXXXXXXX

The Body

The writer of the statement claims that the competitive position of a company is determined by the industry structure in which it competes. I want to evaluate this statement by looking at it through the Positioning schools and Resource based views frame of reference. In comparing the two directions and their view on strategy thinking and competitive positioning I want to determine key elements on these views and how they differ from each other in terms of fundamental hypothesis, focuspoints, central instruments, view on corporations, view on people and finally, what point of crtitiq is linked to these views. I will conclude that neither of these views are 100 correct and that a combination or contingencybased approach in todays competitive and changing world would be the most suithing in corporate strategy thinking.

I want to analyse this

3. Analysestrategiafsnit hvor man så at sige 'sætter analysen op'; dvs. det beskrives, hvordan man kan teste de opstillede hypoteser

4. Metode og dataafsnit med præsentation af de anvendte metoder, data og ikke mindst de konkrete operationaliseringer af de teoretiske begreber, der indgår i de opstillede hypoteser

5. Analyseafsnit hvor de opstillede hypoteser testes, resultaterne fremstilles og kommenteres

Porters Positioning School

Porters Positioning School try to clarify and explain why some companies are more successful than other companies when they apparently are subject to the same business conditions? In addition, the school has focused on answering the question "What forces drive competition in an industry"? In relation to the statement that the task is about is positioning the Porter believes that for the individual company, the business structure and growth potential essential for the company's strategic development and competitive position. Porter identifies 5 different basic forces which determine a company's competitive position in the market (Porter's 5 Forces). Creating an attractive positioning from a strategic analyses of the 5 forces can give a strong competitive position in a given market area. Mintzberg writes in his book The rise and fall of Strategic Planning "The whole positioning school of which Porter is the leading spokesman depends to such an extent on strategic analyses, that it virtually replaces overall planning as the main activity" (Mintzberg 1994:273). In the mid-1980s Michael Porter recommended, an outside-in approach, but he has changed his approach to positioning, and write subsequent positioning now depends on a unique collection of activities, and that is the position to be distinguished from competitors. Barriers (REREFENCE).

The positioning school - Porter could have been the auther of the statement in this . assignment and could fuly agree on its content. Porter's Five Forces Model has some limitations with the market and business environment we have today. One of the criticisms is that the model assumes a relatively static market structure (reference). Porter's model is based primarily on the economic situation in the 80s were characterized by strong competition and a stable market structures and they are no longer the case since our current market is dynamic, hectic and constantly changing (Prahalad and Gary, 1990). The market is in constant and rapid change, which also affects the firms acting in these markets. The spositioning school are too and only focused on the market conditions and their afgørende role in the compttative postion of a company. With Porter's 5 forces analysis you can make it a snapshot of the environment - not more.

Hill and Jones (1995) make further criticisms of Porter's 5 forces by stating that a company's success is not certain to be successful just because it operates in an attractive industry. Porter did not involve the internal environment, which helps to create a competitive advantage in as much as the "five forces". Studies show that there are differences in companies' returns within specific industries (Werner Field & Montgomery, 1988). These differences are interpreted as caused by the existence of firm-specific differences in resources and skills. So it is its 'portfolio' of resources and skills and the effective use of them, which determines a sustainable competitive advantage. Resource-based perspective is that it is the firm-specific competencies and resources that create sustainable competitive positions. This contrasts with the industry perspective (Porter, 1980), which says that it is industry structure and the companies position in it that determines the companies competitiveness.

So if a comny chooses to think its strategtiesd through Porters positioning school its XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

RVB vs. Porters Positioning School

Resource based view

Studies show that there are differences in companies' returns within specific industries (Werner Field & Montgomery, 1988). These differences are interpreted as caused by the existence of firm-specific differences in resources and skills. So it is its 'portfolio' of resources and skills and the effective use of them, which is the prerequisite for achieving sustained competitive advantage. The resource-based view has a weakness, since it only relates inward. Thus it does not create an immediate understanding of its surroundings, or the fact that a company must meet in order to compete in the industry.

With the publication of particular book: The Theory of the Growth of the Firm (Penrose

1959) makes Edith Penrose advocates the view that the restriction of a firm's growth opportunities are primarily related to its internal affairs in terms of resources and derivative capabilities. Werner B. Field (1984, 1986, 1989), JB Barney (1986, 1991) and RM Grant (1991) and double team Prahala CK and Gary Hammel are other prominent scientists within Resource-based view appears as emodpol the positioning school

strong focus on the company's environment as a cause of competitive success.

RBV school is focused on answering the question: "How can some companies continuing to be more successful than other businesses apparently operating under the same external business environment? "The answer to RGB estimate is that it is the internal resources and their exploitation is crucial.

Criticism of the school's theory and method of formation is mainly directed against two

conditions. The first point concerns the unilateral focus on enterprise resource page at the expense of the market since. As you note, here are talk about a critique of the same nature as that which see previous target P-school. Just the opposite sign, since P-school criticized for unilateral focus on market power at the expense of the company resource page.

So if a comny chooses to think its strategtiesd through Porters positioning school its XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Conclusion

Conclusion

6. Konklusion hvor det kort resumeres, hvordan hypoteserne klarede sig i testene. Disse resultater sættes slutteligt i relation til den øvrige forskning på området og teoretiske implikationer drages (her sættes resultaterne i relation til konklusionerne i litteraturgrundlaget).

Restate thesis

All analytical essays must have a conclusion which summarizes the content of the essay. A conclusion must not only provide the reader with a summary, it must restate and paraphrase the introduction and give the reader a sense that the subject has been concluded. The conclusion of an analytical essay should never leave the reader hanging. It should give the reader a clear picture of what he or she has just finished reading and draws the entire paper to a close.

Contingency approach to strategy ... begge dele gælder

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