Critically Evaluate the Approaches of Michael Porter and Gary Hamel to the Paradox of Markets and Resources. Give Examples of How Changing World and/or Organisational Circumstances Affect a Strategic Leader’s Choice Between These Approaches.

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The theories of both Michael Porter and Gary Hamel have changed that way organisations strive for competitive advantage. Their ideas on competitive strategy and management innovation are now seen as essential transformational tools for businesses looking to deliver profitable growth for its stakeholders. Michael E. Porter is a leading authority on competitive strategy, the competitiveness and economic development of nations, states, and regions, and the application of competitive principles to social problems such as health care, the environment, and corporate responsibility. He is the Bishop William Lawrence University Professor, based at Harvard Business School. (Harvard Business School, 2011) Michael Eugene Porter was one of the…show more content…
The Cost leadership strategy aims for the business to have a low price product being the lowest-cost producer. The differentiation strategy involves the development of high quality unique product or services which is usually priced high. Focus is the third generic strategy based on competitive scope. A focus strategy targets narrow segment of domain of activity and tailors its products or services to the news of that specific segment to the exclusion of others. (Exploring Corporate Strategy, 2012). An example of a company that currently follows the cost leadership strategy is Ryanair. Ryanair Ltd is an Irish low-cost airline based in Dublin Airport with operational bases at Dublin and London Stansted Airports. The airline has been characterised by rapid expansion, a result of the deregulation of the aviation industry in Europe in 1997 and the success of its low-cost business model. Although initially this strategy was used to gain competitive advantage over competitors, their success has seen the emergence of approximately 60 new low-cost airlines. As Porters generic strategy model states that a company has to choose one of these strategies and try not to combine both strategies it meant that other companies could try to emulate their success by employing the same strategy and an example of companies that have done this is EasyJet and Aer Lingus. However later on in Porters career he understood that are some circumstances

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