The SWOT Analysis Of Spanos & Lioukas

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Resources can be defined as assets transformed to create benefit that can either be consumed or become unavailable during this transformation process (https://en.wikipedia.org). Examples of resources can be; knowledge, materials, services, staff and energy. The purpose of resource utilization is to generate advantages such as increased wealth, meeting needs or wants, proper functioning of a system, or enhanced well being. Therefore, from an organizational perspective resources is anything used from the business environment to enhance the proper functioning of the organization system and its well being. Resources has three main characteristics; utility, scarcity, and possible depletion or consumption (https://en.wikipedia.org). With respect …show more content…

This concept was used by these researchers Spanos & Lioukas to illustrate that there exist a complementarity between these two perspectives. In their illustration, they divided the SWOT analysis components into two separate components one representing the market driven perspective which covers the opportunities and the threats analysis, while the other component represents the resource-based perspective and covers the analysis of the strengths and weaknesses sections in the SWOT (Spanos & Lioukas, 2001). Their purpose is to determining the relative impact industry and the firm specific factors such as; resources, industry forces, strategy, and firm performance, has on the market performance and also of profitability. The result from this SWOT analysis, illustrates the complementarity between Porter’s market driven strategy and the resource-based perspectives in three different relationships. Firstly, the two perspectives complement one another when we consider the strategy effects. Both perspectives described that there is a direct effects of strategy on firm performance, meaning that, a firm performance can be impacted when a firm enacts or creates value for buyers, either through the strategies of differentiation or cost leadership (Spanos and Lioukas, 2001). Secondly, complementarity can be seen in the industry effects which represent the market driven strategy perspective component the SWOT. This revealed that there is a direct relationship between industry effects and firm performance which is as a result of a defensive strategy created by the firm for the purpose of protecting the firm against the competition from its rivals due to it strategic positioning in the industry. Thirdly, the firm assets effect can also be used to illustrate the complementarity which is more skewed towards the

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