MBV vs RBV 5 Forces

strategic positioning, positing school, outside-in strategy

Market- Based View

inside-out strategy

Resource-Based View

MBV: Porter’s Five Forces

threat of new entrants, bargaining power of firm’s suppliers, bargaining power of firm’s customers, threat of substitute products, intensity of rivalry among competing firms

MBV: three generic strategies

cost leadership, differentiation, focus

critiques of market-based view

five-forces framework does not cover all forces that shape competition, bias toward tradition big business and mature industries, too analytical, very deterministic

concerned with explaining the internal sources of competitive advantage

resource based view

in rbv, firms should be conceptualized as

unique bundles of productive resources which managers utilize

stocks of available factors that are owned or controlled by the organization

resources

special types of resources, specifically an organizationally embedded non-transferable firm-specific resource whose purpose is to improve the productivity of the other resources possessed by the firm

capabilities

it its the _________ that builds capabilities

bundling of the resources

greatest influence to least environment

macroeconomy/ business environment, industry environment, organization