The Dilemma of Markets and Resources Paradox: The Way Forward

Abstract

This report analyses the paradox between markets and resources and suggests the way forward for strategically challenged companies. When deep pocketed companies, such as those backed by sovereign wealth funds from the Middle East, can procure almost any resource, the question arises whether resource restrictions can be considered a hindrance for success. Can resource rich companies diversify into any market they choose by buying required resources? Newly procured talents and tangible resources often do not cohere to form competencies. On the other hand, considering the resource based approach, though distinct competencies lead to competitive advantages, unless these competencies are constantly updated, the advantage will be lost. Thus, for an organisation to be successful, it is not enough to be market driven or resource driven. It has to be 'competence adaptability' driven.