ABSTRACT
This chapter concentrates on developing an understanding of the major factors governing the level of performance of the business, namely, its resources, competences (particularly its core competences), and its so-called value-adding activities. Two positions have emerged as the most prominent: the competitive positioning school of thought, based primarily on the work of Michael Porter, and the resource or competence school. The analysis of competitive advantage based on these two approaches forms the basis of this chapter. Much of the writing and case study examples to be found in strategy texts and academic papers relate mainly to manufacturing and the production of physical goods. Some writers have argued that different factors have to be considered in the context of services such as those considered in THE sectors. This has led to the development of specific conceptual models being developed such as the service profit chain and to the development of an academic framework, so-called service-dominant logic.
