Compare Io Model and Rbv

1995 words 8 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
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We are in the process changing to an information society. Meanwhile, the form of completion in many industries around the world is changing. In addition, the development of economic globalization is the property of the changing in current economic society. There are some new characteristics of changing in 21st century industries as follow: (1) Rapid technological change; (2) the size of investment in the global business can be huge; (3) Hypercompetition. Generally speaking, the aim of a firm to use business strategy is to apply the internal competences to match its external environment. Hence, both part of the I/O model and RBV theory are relevant to the management of firms in developed economies. They are human resource, innovation, market segmentation and financial resources (includes risk capital). Many scholar regard human knowledge as a very important factor in the society transformation. It is the major source of companies in the IT industry. Infosys which is an IT services company in India laid significance on human factor. It has one of the largest training facilities which is not far away from its headquarters. The training centre can train about 13,500 new employees every quarter. The revenue for the company was $100million in 1999 and increased to $2 billion in 2008. Innovation is also an important factor to get success in 21st. it is integral to the growth and wealth of firms. There are 600 millions patents in American history until

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