Members of the Jury, honorable Chairman, thank you for the opportunity to speak. We are here to discuss whether the resource-based view is the best approach that Service Companies can adopt as a strategy formulation process.
Firstly we would like to define the mentioned terms; Service companies and Strategy
Service companies / The service industry is defined according to the Business Dictionary, which states that service industry companies are involved in retail, transport, distribution, healthcare, children care, entertainment food services, as well as other service-dominated businesses.
Strategy: - defined in respect to the Resource Based View process - Strategy is about exploiting the strategic capability of an organization, in terms of its resources and competences, to provide competitive advantage and/ or yield new opportunities
We will present to you arguments in three main areas, proving that the RBV is the right approach to Strategy development.
* Internal resources provide the basic direction for a strategy * Competitive advantage
* Cost effective
Robert M. Grant, Georgetown University defines that strategic direction will be provided firstly by the resources and capabilities of a company, disregarding the method they chose to construct their strategy. The company will be able to gain advantage on the market only when optimally using its strengths and resources and reasonably considers the opportunities in the environment.
The RBV emphasizes on the internal resources and capabilities of a firm in formulating its strategy to achieve sustainable competitive advantages in the market place and optimize the opportunities in it. The RBV deals with competitive business environment but take an inside-out approach i.e. it starts with analysis of firm’s internal environment. As such RBV is often considered as an alternate to Porter’s...