Introduction
Generally speaking, strategy is considered as an organisation’s basic direction for the future (Lynch, 2006). As Porter (1980) pointed, the essence of strategy is about setting a goal and cultivating sustainable competitive advantage to achieve this decision. However, organizations have many different perspectives about strategy’s choice. The purpose of this essay is to critically review ‘Competing on Capabilities: The New Rules of Corporate Strategy’ (Stalk et al, 1992). The position of the article in strategic debate will be examined first, followed by its main strengths and weaknesses respectively.

Put the article in a broader debate
The contents of the article can be ascribed to different debates in strategy academia. However, resource based view (RBV) versus positioning view may be the most appropriate debate for this article. Basically, this debate reflects that company’s strategy is influenced by company’s internal resources or external industry environment (Whittington, 2001). Stalk et al (1992) hold the view that organizations can succeed; the key is whether the companies can transfer their fundamental business processes into the capabilities, which can deliver superior value to the customers. This can be seen as authors emphasize RBV rather than the opposing view.

Resource based view is identifying and classifying the firm’s inside assets which give the firm competitive advantages (Wernerfelt, 1984). Specifically, internal resources which give the firm sustainable competitive advantages must be valuable, rare, inimitable and irreplaceable (Barney, 1991). Stalk et al (1992) indicate that company’s fundamental infrastructures are closely linked to support each other, so the rivals may find difficult to imitate. Indeed, the example of Wal-Mart’s warehouse system mentioned in the article is one kind of resource which replicate hardly by