Widely acclaimed for its ability to foster creative, non-prescriptive and global strategic thinking amongst students, Strategy:
The fundamental question in the field of strategic management is how organisations achieve and sustain competitive advantage Teece, et al, and therefore attain above industry-average profit. However, since both the business environment and individual firms are dynamic systems, continuously in flux, it is a big challenge to achieve a fit between these two systems de Wit B and Meyer R.
This essay will firstly assess and consider the balance of market- led and resource-based approaches from the academic point of view. These two approaches should be viewed as complementary Prahalad and Hamel, ; Mintzberg et al, ; Greenley and Oktemgil, Once it failed to do so, the company immediately suffered the fall inlost market share and decreased the revenue.
However, the company quickly recovered because it followed the market trends, and simultaneously its strong internal strengths neutralised the external threats. In addition, I will argue that Nokia can maintain its market share and its market leader position in the following years based on the good market opportunities in mobile phone industry and its strong internal resources basis.
Within the dynamic and complex mobile phone industry, both approaches are necessary if Nokia is to succeed. Nokia case study Part 1: In reality, on one hand, some argue that an organisation needs to adapt itself to its environment.
Managers should take the environment as the starting point, choose an advantageous market position and then gradually set up the resource base and activity system necessary to apply this choice. On the other hand, some argue that the organisation can adapt the environment to itself.
The companies with an outside-in perspective take the environment as the starting point, set on developments in the market-place and adapt themselves to the external opportunities and threats encountered.
They use the signals from customers and competitors to decide their own game plan Jaworski and Kohi, Furthermore, proponents of this market-driven approach tend to emphasize that an insight into markets and industries is essential.
They argue that not only the general structure of markets and industries need to be analyzed, but also specific demands, strengths, positions and intentions of all main forces need to be determined. Concluding the advantages of this approach, Lieberman and Montgomery argued that firms that are market-driven are always the first ones to recognize that new resources or activities need to be developed.
However, some argued that market positioning is vital, but must take place within the boundaries set by the resource-driven strategy de Wit B and Meyer R. So for successful companies, they need to firstly build up a strong internal resource base, and then based on this strong resource base they can access to unfolding market opportunities in the medium and short term.
Collis and Montgomery also pointed out that having distinctive or core competences can be a very attractive basis for competitive advantage, since rival firms normally need to take a long time to catch up.
Even if competitors are successful at identifying the competences and imitating them, the company with an initial leading position can still upgrade its 2 competences and stay ahead.
In practice, Hofer and Schendel found both positioning and resource deployment issues are critical for creating a competitive advantage. So, they argued that competitive superiority stems from the ability to align positional advantages and resource-based elements of strategy.
Meanwhile, some other experts further suggest that the two approaches should be viewed as complementary, since organisations need to develop both internal and external focus to develop knowledge-based core competences and market driven strategies sensitive to customer needs Prahald and Hamel, ; Minzberg et al.
Therefore, both approaches are needed to be considered and balanced simultaneously in making the strategic choice. Actually, Nokia can achieve the great success in the mobile phone industry, one important factor is that it can align these two approaches — market-driven strategy and resource based strategy during the process of its development.
Once it failed to do so, the company immediately suffered the fall, lost market share and decreased sales revenue. Certainly, when the company aligned these two approaches again, the company got the recovery soon.
Since those early days, Nokia has evolved into a conglomerate encompassing several industries. With the collapse of the USSR inNokia suffered the high pressure to survive in so many different areas. Soon Nokia achieved the success in the mobile phone industry and becomes the largest mobile phone company in the world.Thomson ONE delivers a broad and deep range of financial content, all within a workspace that's geared to your needs and workflow.
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Strategy: Process, Content, Context by Bob De Wit. Thomson Learning, Paperback. Used; Acceptable. Covers worn. Fast Dispatch. Expedited UK Delivery Available. About the book. The highly anticipated new edition of the market-leading introduction to strategic management from Bob de Wit (Maastricht School of Management) and Ron Meyer (TiasNimbas Business School).
De Wit And Meyer Pp Fedex Case Study Corporate Strategy Fedex Executive Summary This report endeavors to look at FedEx from the strategic initiative point of view and how it was able to adapt to changing business environment to improve itself.
version of de wit and meyer's successful text, strategy: process, content, context it contains a range of articles with text contextualising the debates around key issues, allowing a wide range of views to be explored within each debate.