5)Compare and contrast Porter’s view on competitive positioning with Barney’s resource based view.
...uyers and supplies, threat of substitutes, competitive rivalry. Value chain analysis shows a clear picture of activities within and around the organisation. It is an internal environment analysis. The generic competitive strategy means that companies have only few choices when developing their strategy. They can choose to be either differentiation or cost leadership, and either broad or focus. Barney’s resources based view mainly focuses on 4 questions: the question of value, the question of rareness, the question of imitability, and the question of organization. He believes that in order to understand the whole picture, managers should look in to the company’s resources and capabilities. And in the view points of resources and capabilities include financial, physical, human, and also the organization assets. The common view of Porter and Barney is that they both believe when understanding the whole situation, only analyse the external environment is not enough. Porter has developed a value chain analysis to understand the internal environment. In the model, we should look at both primary activities, such as inbound logistic, operations, outbound logistics, marketing and sales, and services; also, we need to look at the support activities, such as firm infrastructure, human resource management, technology development, and procurement. Barney also thinks that just by analysing the external business environment is just half of the story. Therefore, he suggests that managers should think of the resources that the company has, and identify the value, rareness, imitability of the resources, and finally look into the organization system to see if the company can fully realize the potential. Of course when discussing the value, rareness, imitability of the resources, managers should understand the external environment in order to identify the competence. But in fact, Porter’s view and Barney’s view are two different way of analysis. The first different of Porter’s view and Barney’s view is that Porter’s view has developed into a model for people to follow, while Barney’s view is just a guideline. Porter’s five forces analysis and value chain analysis are more like a “fill in the blanks” model. The areas that needed to consider is clearly stated. For example, Porter’s five forces m...