Essay on The Concept Of Corporate Strategy

1048 Words Nov 15th, 2016 5 Pages
Introduction

‘Saving people money so they can have a better life.’ (S. Walton, founder of Wal-Mart) is both the company’s slogan and the essence of its corporate mission. Since 1990, the chain has been the leader of the american retail industry, their success is assimilated to the innovative corporate strategy of relying on both the firm’s capabilities and resources.

1) Position of the article in the strategy debate

Richard Lynch (2006) defines corporate strategy as the focus on the ‘organisation’s basic direction for the future: its’ purpose, ambitions, resources and how it interacts with the world in which it operates. The article’s position in the wider strategical discussion is in the firm’s strategy to obtain and sustain competitive advantage, particularly putting in perspective the Positioning verses Resource Based View (RBV) debate, with the example of Wal-Mart. This debate opposes two classical schools of thoughts : the positioning school represented by the Five Forces model (Porter, 1980) and the resource based school which concept was first introduces by Selznick (1957) and Penrose (1959), ‘put in debate’ by Wernerfelt (1984) and developed into a framework by Barney (1991) which identifies a company resources as essential characteristics for a sustainable competitive advantage.

The positioning approach is adapting the company’s strategy based on its current position within the market and therefore trying to increase its competitive advantage using the…

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