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.

2417 Words Mar 1st, 2013 10 Pages
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
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Bowman's Strategy Clock considers competitive advantage in relation to cost advantage or differentiation advantage and is father more market-focused than Porters strategy. With the Strategy Clock looking at the different combinations of price and perceived value, businesses can begin to choose a position of competitive advantage that makes sense for the organisation's competencies. It also allows business to look at how to establish and sustain a competitive position in a market driven economy.

Dr. Gary P. Hamel is an American management expert, who alongside C. K. Prahalad a corporate Strategist created the concept of core competences. Gary Hamel born in 1954 is one of the most respected contributors to the debate on strategy of the late 20th century. He attended both Andrews University and the University of Michigan. He is also the founder of Strategos, an international management consulting firm based in Chicago. Hamel’s concept derives from a strategy known as the resourced-based (RBV) view also known as the capabilities view. The RBV combines the internal analysis of phenomena within companies (a preoccupation of the 'distinctive"" and 'core competency' group) with the external analysis of the industry and the competitive environment (a focus of the industrial organization group. (Create Advantage, 2012)

Hamel’s and Prahalad’s

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