Competitive Advantage Approaches (Inside Out and Outside in)
The debate continues in distinguishing the most preeminent way of seeking a sustainable competitive advantage. The two approaches formed by the debate ― the positioning approach and the resource-based approach: have become apparent strategies of attaining and sustaining a competitive advantage (Barney, 1991; Porter, 1996). Regardless of the approach, attaining both customer- value and product differentiation are the two determinants of a successful business strategy (Barney, 1991; Porter, 1996; Woodcruff, 1997). The positioning approach, often referred to as the “outside-in” …show more content…
Best Cost Provider
There have been a number of adaptations of the generic strategies; this approach to customer value accentuates the combination of Porter’s Cost-Leadership and Differentiation, to aim at giving customer value for money (Baroto, Abdulla & Wan, 2012). It stresses that success is dependent on an organisations capabilities and skills to provide eye-catching features at a lower cost than competitors, outperforming others who just focus on just cost or differentiation. It suggests that predominantly buyers are price and value sensitive Baroto, Abdulla & Wan, 2012).
Cliff Bowman developed the “Strategy Clock” variation to Porter’s