Question

The industry based view of strategy posits that competitive advantage results from the firm’s position in the market. However, the resource-based view says that it is resultant from the uniqueness of the firm’s resources. They can’t both be correct, can they? (your answer should not be longer than 1 page)

Answer 1

Competitive advantage is something which makes the products and services superior in comparison to the other choice of products and services by customers. The both strategies of industry based view and resources based view are not correct, but yes resource based view of strategy is somewhat close to the actual meaning of competitive advantage. Position of firm in the market didn't mean that it will surely have competitive advantage. Resource based view of strategy will provide that competitive advantage is gain from the uniqueness of the firm's resources as it will properly provide a balance between the resources of the firm and sustained competitive advantage. Uniqueness will provide new idea which will further differentiate the products and services of the organization from other organizations and attract more customers towards it. So resource based view of strategy is more closer to the concept of competitive advantage in comparison to the industry based view of strategy regarding competitive advantage.