Ba Capstone Week 1 Discussion: Strategic Competition

Ba Capstone Discussionsweek 1 Discussionstrategic Competitivenessple

BA Capstone Discussions Week 1 Discussion "Strategic Competitiveness"

Please respond to the following:

• From the first e-Activity, determine which of the two primary drivers of the competitive landscape is more influential. Explain your rationale.
• Explain which model (I / O model or resource-based model) you believe will best help a firm in the industry you researched earn above-average returns.
• Respond to at least 1 other peer.

Paper For Above instruction

The concept of strategic competitiveness is central to understanding how firms position themselves within their industry to achieve sustained superior performance. Two primary drivers influence the competitive landscape: industry structure and firm capabilities. Among these, firm capabilities often exert a more profound influence because they encompass the unique resources, skills, and competencies that enable a company to differentiate itself and adapt to changing environments. While industry structure, as articulated in Porter’s Five Forces, defines the rules of competition, it is the firm’s internal strengths—its capabilities—that ultimately determine its ability to outperform competitors and sustain profitability.

This perspective aligns with the resource-based view (RBV) of strategic management, which posits that competitive advantage stems from a firm’s unique resources and capabilities that are valuable, rare, inimitable, and non-substitutable (VRIN). RBV helps firms develop strategies centered around leveraging their unique assets, such as brand reputation, technological expertise, or organizational culture, to achieve above-average returns. Conversely, the Industry / Organization (I/O) model emphasizes aligning the firm’s strategies with external industry conditions, often suggesting that external factors primarily determine success.

In industry-specific contexts, the resource-based model often provides a more robust framework for firms to attain and sustain above-average returns because it emphasizes internal competencies that are difficult for competitors to replicate. For example, in the technology sector, a company's proprietary innovations or distinctive organizational processes create barriers to entry and lead to sustained competitive advantage. In contrast, industries characterized by rapid change and commoditization might favor a flexible, capabilities-focused approach aligned with RBV.

Empirical studies support the efficacy of the resource-based view in explaining long-term success, as firms that develop and protect unique resources often outperform peers that rely solely on external positioning strategies. Therefore, while industry analysis offers valuable insights into external opportunities and threats, internal capabilities are increasingly recognized as the primary driver of sustained competitive advantage and above-average returns in many industries.

Responding to peers, it is crucial to consider that the influence of external versus internal factors varies by industry. However, a focus on developing and leveraging unique capabilities tends to provide a more stable foundation for competitive advantage over time, especially in dynamic and Globalized markets.

References

• Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
• Porter, M. E. (1985). Competitive Advantage. Free Press.
• Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.
• Grant, R. M. (2019). Contemporary Strategy Analysis. Wiley.
• Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14(3), 179–191.
• Barney, J. B., & Hesterly, W. S. (2019). Strategic Management and Competitive Advantage: Concepts and Cases. Pearson.
• Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79–91.
• Collis, D. J., & Montgomery, C. A. (1995). Competing on Resources: Strategy in the 1990s. Harvard Business Review, 73(4), 118–128.
• Newbert, S. L. (2007). Empirical research on the resource-based view of the firm: An assessment and suggestions for future research. Strategic Management Journal, 28(2), 121–146.
• Makadok, R. (2001). Toward a synthesis of the resource-based and dynamic-capability views of rent generation. Strategic Management Journal, 22(5), 387–401.