Compare Io Model and Rbv

1981 WordsOct 16, 20108 Pages
Table of Contents 1. Strengths and Weaknesses of I/O model and RBV … 3 2. COMMONNANDDIFFERINGTHEMES…………………………… 4 3. STRATEGY FOR 21ST CENTURY………………………………… 6 4. CONCLUSION…………………………….. ………………………… 7 REFERENCE LIST…………………………………………………… 8 1. Strengths and Weaknesses of I/O model and RBV BOTH OF THE INDUSTRIAL ORGANIZATION THEORY AND RESOURCE-BASED THEORY ARE SIGNIFICANCE FOR STRATEGY MANAGEMENT. HOWEVER, NO THEORY IS PERFECT, BELOW WOULD SHOW THE STRENGTH AND WEAKNESS OF I/O MODEL AND RBV. Strength of I/O model The core of I/O model’s framework is based on the consuetude of industrial organization which is there are five force in all competitive industries. The five forces have great significance in…show more content…
The history of Apple Inc is the history of innovation. The product of Apple inc are totally different with any other competitor’s product, for example, iphone, mac, ipod and so on. In 26 may 2010, the total market value of Apple exceed Microsoft. In order to innovate and implement, the corporate also need the financial resource, for example, risk capital. The investment of risk capital increases from $5 billion in 1992 to more than $100 billion in 2008. A lot of entrepreneurs are the beneficial owner of risk capital, for example, Bill Gates and dell. Companies need consider the market segment in external environment. Apple did not success at the beginning. It had come out a computer which has high quality and high price, but in the demand is very low because at that time the customer prefer normal product. In 21st century, the life style has already changed. Hence, customers like to get distinctive products. 4. Conclusion This essay talks about two different perspectives on strategy. They are industrial organization model and resource-based view theory. The first part talks about strengths and weakness of both I/O model and RBV theory. The I/O model’s framework is based on the tradition of industrial. It uses five forces in the industry attractiveness and strategic planning. However, I/O model is limited by the public policy. In contrast, RBV looks inside of the firm and it is a theory of competitive advantage. Many scholars argue

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