Abstract
An effcctive business model needs to meet two criteria. First, the model should be able to explain how businesses and firms achieve superior financial performance. This is the descriptive side of the model. By observing the actual performance of a collection of businesses and applying the basic concepts implicit in the model, we can understand better the heterogeneity in firm performance. Second, and perhaps more important from a practical point of view, is the normative side of the model. The framework should provide guidelines and tools that will help to create a winning strategy and support the successful implementation of that strategy. The existing business models are at best incomplete in both dimensions.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Notes
Michael E. Porter’s primary work on competitive positioning is in his books, Competitive Strategy (New York: Free Press, 1980) and Competitive Advantage (New York: Free Press, 1985).
The seeds for this view originated in the work by E. Penrose, The Theory of the Growth of the Firm (Oxford: Basil Blackwell, I 959).This approach was substantially developed among others by B. Wernerfelt, ‘A resource-based view of the firm’, Strategic Management Journal, Vol. 5, pp. I 71–80, I 984; J.B. Barney, ‘Firm resources and sustained competitive advantage’, Journal of Management,Vol. 17 pp.99–120, I 99 I; M. Peteraf, ‘The cornerstones of competitive advantage: a resource-based view’, Strategic Management Journal, Vol. 14, No. 3, pp. 179–92, I 993. C.K. Prahalad and Gary Hamel popularized the approach in their now classic paper, ‘The core competence of the corporation’, Harvard Business Review, MayJune, 1990, pp. 71–91.
Ricardo, D. Principles of Political Economy and Taxation (London: J. Murray, 1817).
Copyright information
© 2001 Arnoldo C. Hax and Dean L.Wilde II
About this chapter
Cite this chapter
Hax, A.C., Wilde, D.L. (2001). The Triangle: Strategy Based upon Bonding. In: The Delta Project. Palgrave Macmillan, London. https://doi.org/10.1057/9780230288089_3
Download citation
DOI: https://doi.org/10.1057/9780230288089_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-42736-9
Online ISBN: 978-0-230-28808-9
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)