The sails determine the course, not the wind

For decades, strategy research has concerned itself with the question of where the reasons for above-average and sustained success lie.1 Different explanations have been developed for this. The two most important approaches are the “market-based view” and the “resource-based view.” These are two completely opposing viewpoints and have far-reaching consequences for the strategy process. Essentially, the issue revolves around the question of whether a company’s success is determined by the structure of the market — and some key industry characteristics in particular — or whether success is more dependent on company-specific factors. Therefore, we would like to present these concepts in more detail and show why an orientation toward one’s own competences should be the starting point for strategic decisions, as well as why core competences, in the form of unique skills which impart value and cannot be imitated, are considerably more decisive for the success of the company than industry characteristics.