Strategy and Innovation


Until the 1940’s, strategy was seen as primarily a matter for the military. The need for a concept of strategy related to business became greater after World War II, as business moved from a relatively stable environment into a more rapidly changing and competitive environment. Numerous authorssince have developed the concepts of business strategy. While there are many debates and discourses related to the field of strategy, two dominant models have sufficed, Industrial Organisation (IO) modeland Resource Based View (RBV) model. Proponents of boththe models have led intense debate for the viability, sustainability and competitive success of each model. However, the “pendulum” keeps swinging from one to the other.

You are required to:
1. Using the literature, compare and contrast the two dominant models and provide a succinct yet, in-depth discussion of its standing.

2. Write a critique of the two models using your discussion above and explain why the “pendulum” keeps swinging.

3. From the knowledge gained, discuss where you think the future “pendulum” will be and why?

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