Strategic Positioning Approach and Resource Based View Approach



Strategic Positioning Approach and Resource Based View Approach

Introduction

Companies required being innovative and credible in offering products and flexible to compete with situations and to dealt with market changes. Competitive is focus around to be different from others. Strategic Positioning and resource based view approach provides guideline for adopting competitive advantage in operating market. Michael porter argues that successful strategic positioning depends on correct choice between differentiation and cost leadership.

Discussion

Strategic positioning is an integral part of strategic management process which comes from three different sources, which can occur at same time and often overlap. Three different sources includes: it can be seen as producing subset product of an industry's products and services, fulfilling most or all of the needs of particular set of customers and it is done in that particular segment which are accessible in various ways.

Resource- based view based on its internal capabilities in articulating strategy towards attaining sustainable competitive advantage over its industry. Organization is with internal capabilities it can compete with external environment. Further there are circumstances that organization internal capabilities can enable them to create new markets and enable them to increase customer value.

Strategic Positioning is not a useful guide in seeking competitive advantage as compared to resource based. Strategic positioning is considered to be less useful as strong positioning can be easily copied. While you consider strategic positioning first source of producing subset product can only be economical if company enable to produce best set products by implication of different set of activities. Considering its second source fulfilling most of the needs of particular customer can only be done when there are different sets of customers with varying needs and it can be served at its best. Where as, in resource based competitive advantage ...