Cima E3 Exam Question No 17

Question No 17:

What are the Comparing and contrasting RBV to the Positioning Approach Differences?

Resource Based View (RBV)
 · Resource based approach
· Inside out e.g. key internal resources for achieving success.
· Organization focuses on what it does best e.g. 'stick to knitting'.
· Emphasis on internal appraisal e.g. unique assets or core competences.
· Higher cost and time to exploit but long-term advantage.
Differences
 · Market based approach
· Outside in e.g. best external opportunities to exploit.
· Organization focuses on diversity and innovation.
· Emphasis on external environment e.g. competition and customers
· Less costly to exploit but short term advantage gained.