PESTEL & POSITION – RESOURCE BASED STRATEGY

When the environment changes (PESTEL) organisations have to decide how to respond. Broadly, their choices are;

1 Do nothing (not likely to be acceptable if the environmental change is significant)
2 Change what they do (change their position)
3 Use what they do/know in a different way (use their resources)

For example, the printing industry is likely to be affected by e-books and on-line magazine access. How should a printing company respond to that change in the technological environment?

Change what it does by starting to make e-books. That would be a position-based response and not a good choice I should think as the copmany knows nothing about that business.

Finding other uses for its printing skills eg printing books, calendars, newsletters, produced and uploaded by internet users. That is a resource-based response and allows the company to keep operating in the area where it has skills and resources.