Question
Online Tech support (Microsoft Teams Meeting) B Question 3 Porter's (1985) Competitive Strategy suggests that a well developed and executed competitive strategy is the source of competitive advantage. Drawing on your knowledge of the Resource Based View on this module, is Porter's view entirely correct? A. Yes B. No A B 1 pts
Answer
3.8
(232 Votes)
Wyn
Master · Tutor for 5 years
Answer
B
Explanation
This question is about business strategy, specifically Porter's (1985) Competitive Strategy. At a high level, this framework proposes three competitive 'generic strategies' that a company can use to gain advantage over their competitors - cost leadership, differentiation, or focusing on a very specific, 'niche' part of the market. However, the question introduces a debate. It juxtaposes Porter's thesis to the Resource Based View (RBV) of firms, which emphasizes that a company’s internal resources are crucial for sustaining competitive advantage.As per RBV, companies gain sustainable competitive advantage by implementing strategies that exploit their internal resources, on which competitors are not able to duplicate or cannot be substituted easily. For Porter's model to be 'entirely correct' means that it must account for all possible scenarios under which a company can gain competitive advantage. The argument here often relies on the supposition that Porter's model does not sufficiently account for the crucial role that internal resources (and their effective management) play in developing and sustaining a competitive lead.