Comparing and Contrasting Resource-Based Strategies with Competitive Positioning Strategies

Resource/Competitive Positioning Comparing and Contrasting Resource-Based Strategies with Competitive Positioning Strategies Resourced-Based Strategies Competitive Positioning Strategies Strategies For-Profit in the 21st Century There are two schools of thought regarding the composition of a competitive strategy. The first is resourced based. This approach identifies key resources and seeks to leverage these in order to provide value to the consumer and achieve a competitive advantage in the marketplace.

The next strategy begins with identifying a niche or more general opportunity in the market and aligning resources within the organization to achieve a competitive position in regards to the competition. The former strategy can be generalized as more of a push strategy while the latter is more of a pull strategy. Both have advantages as well as disadvantages and fit certain circumstances better than others. In this research project, a brief literature review of both vantage points will be provided follow by a brief analysis of relevant implications.

Resourced-Based Strategies Resource-based strategies are commonly applied to the industries which operate under conditions of scarcity. Firms operating in this industry usually try to maximize the efficient and effective use of the resources available to whether they are commodities, raw materials, or human capital. One study identified the need for an advanced market assessment to utilized as a research tool to uncover the under met or unmet needs in a community (Eschenfelder, 2010).

If an accurate picture of the needs in the community is developed, then the resources available to the organization can be aligned in order to best fulfill these needs. Have access to key market metrics is vital for the success and profitability of resource-based strategies. Although resource-based strategies are commonly thought in terms of tangible resources, this is not always the case. Another application of the resource based theory has been applied to the Chinese label attached to Chinese exports -- Made In China (Zhang & Su, 2009).

It is postulated that since a brand image must be based on the organization, in this case Chinese manufactures, be entitled to superior resources in order to maintain the added value that the brand receives from consumers. Recently Chinese brands have had quality issues in some exports. Therefore to restore the value of the brand, China must view quality as a strategic resource that must be efficiently managed.

Research has also indicated that when an private organization expands through a greenfield strategy that a resource based approach allows companies to fully utilize internal competencies that translated into value added contributions in the new market entry (Berry-Stolzle, Altuntas, & M., 2010). The authors found evidence consistent with the view that the internal resources of the parent companies significantly contributed to the design of competencies within the subsidiaries.

Since the resource based approach is not limited to traditional concepts of resources, it can also be applied to various organizational structures (Pertusa-Ortega, Molina-Azorin, & Claver-Cortes, 2010). The authors investigated how organizational structure affects firm performance and finds that in larger organizations an indirect influence exists due to the competitive strategy. Another research project used a lens of a resourced-based view to examine whether new ventures in high-technology industries could add value to accumulated resources and provide the organization a competitive advantage (Lin, Lin, & Bou-Wen, 2010).

It found that three core elements, technology, networking, and legitimacy are significant in predicting the success of such ventures. It is not difficult to conceptualize from the resource-based view how improvements in technologically derived resources would provide an overall benefit to the entire parent organization. Competitive Positioning Strategies The competitive-based strategy seeks to identify opportunity within a competitive landscape and mobilize resources to achieve the intended positioning.

This makes sense on many levels, however one fundamental challenge to this approach is that the competitive landscape is dynamic in nature and therefore the strategy must be as well. One study analyzed companies' competitive strategies in regards to the competitive landscape and then also looked at the environmental situations found in the international construction industry in the United States and Turkey (Korkmaz & Messner, 2008).

They found that while they strategies are fairly consistent in their overall ambitions, they do change for environmental considerations that occur over a longer time scale. Another study poised the question of whether or not the stakeholder profile, the differences found in the structures, composition, and ambitions of stakeholder groups, influenced the competitive strategy that these firms pursue (Greenley, Hooley, Broderick, & Rudd, 2004). They found evidence that the stakeholder profile did influence the strategic planning in a group of UK firms.

This may be due to the fact various stakeholder profiles have different ambitions; especially in terms of risk aversion. If a profile was less risk averse then they would reasonably be more aggressive in pursuing opportunities identified in the market. There are a plethora of variables involved with trying to identify how a competitive positioning strategy is created and then once it is created, defended against imitation or encroachment (Hooley, Greenley, Fahy, & Cadogan, 2001). Furthermore, positioning strategies try to create value for the consumer market by filling needs.

However, this is dependent, to a large extent on how the consumer perceives the initiative. One are of research that is emerging to attempt to delineate this dilemma is studying consumer perceptions. Global consumer culture positioning (GCCP) and perceived brand globalness (PBG) represent two important constructs for studying international advertising in the context of global consumer culture (ARchpru & Alden, 2010).

Ultimately, the consumer is largely the final judge of any competitive strategy and evaluating consumer perceptions is one way of determining the level of success or failure within a positioning strategy. Positioning strategies are by no means limited to the business world either. The same concepts can be applied to the political sphere in which marketing and perception awareness plays an integral role.

One study found that in Mexico's election in 2006 found that five factors were most responsible for the politician's (brand's) success; these were competence, empathy, openness, agreeableness, and handsomeness (Fransico & Vicenta, 2009). There are undoubtedly ethical concerns with such an application of the theory however such as whether the candidates should be promoted by their marketing "qualities" as opposed to the content of their positions on various issues.

Strategies For-Profit in the 21st Century Of the two strategies, it is reasonable that the pull strategy should, at least in theory, be better equipped to meet the needs and wants of consumers. However, another interesting development is the rise of global warming research and environmental concerns, adds another layer of complexity to the debate. There is reason to believe that humanity may reach a point in which natural resources and the production processes that contribute to various forms of pollution will need to be controlled and restricted.

There is evidence that this is already underway given the worldwide acceptance of environmental regulations; in fact, the United States has been one of the last adopters of such regulations and it is predicted that this trend cannot hold. It may very well be the case that both types.