Market and Resource based Critical Evaluation

Market-based strategic view only focuses on the position of a company in the industry and tries to emphasize the strategy of the company based on the environment in which the company operates. It is simply based on the external factors of the industry. On the other hand, resource based view focuses on the capability of the company’s resources and the other internal factors for the purpose of maximum utilization. They are simply based on the internal factors of the industry.

Critical evaluation of market-based view

Market-based view of strategy works on the concept of helping the organizations to select and identify the competitive dimensions and promote the management process to meet the appropriate winners (Poser, 2003).

Here, the main focus is to gain an attractive position in the industry. It also helps in selecting the product-market combination in which the company applies its strategy. With the help of this approach, a company can easily analyze the industrial structure and create a strategy for effective positioning in the industry based on its structure. The company uses external resources in the market for making an effective and suitable strategy. This strategy is also helpful in expanding the plan for the company considering its political, technological, social, customer and market conditions.

Critical evaluation of resource-based view

Resource-based view strategy is important, essential and an inside-out management concept that is very useful in developing a successful strategy (Connor, 2002). It helps to identify and emphasize the important resources in achieving competitive advantage.

It also concerns the effectiveness and capability of internal resources. Generally, tangible and intangible resources both are included in this approach. This type of strategy also tries to create a framework for the executives to think about their strengths and weaknesses and understand the marketing issue that helps in improving the overall corporate performance.

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