Can strategic analysis through a market and resource based view prevent the founding of companies with an unsustainable business strategy?

Sammanfattning: The Resource-based and Market-based views (RBV and MBV) are two theoretical frameworks which try to find an optimal structure for business strategy by focusing on key strategic points to gain the maximum output or return. During the peak and later upheaval of what is often called the “dot.com bubble” – business models, valuations and strategies were questioned with regards to their anchorage to reality and building endurable businesses. Based on a wide investigation of literature and reports within the Resource-based and Market-based view combined with first-hand interviews and second hand research, we have tried to find to what extent these strategies could or would have prevented investments in IT-ventures lacking the prerequisites for long term competitive advantage. The initial indications and rationale was that the information and frameworks would provide a structured strategic analysis that, if correctly used, could have prevented the poor investments and even lessened the impact of the crash. However, our conclusions are that a strategic analysis, using the MBV and RBV frameworks, would not have been able to give a correct strategic recommendation since the analysis would have been largely based on incorrect assumptions. Furthermore the analysis would not in an efficient way make us aware of the inflated valuations and the inherent traits of new technologies. However, by adding additional theoretical frameworks such as behavioural finance and dominant design, we could conclude that, a more “true” picture of the inherent risk with IT-ventures at the time could have been created which should have been able to supply investors and entrepreneurs with the needed information to not embark on fruitless IT-ventures. Nonetheless we also conclude even a “true” analysis would have had very little or no lessening or preventive impact on the dot.com bubble as the forces behind the bubble were first and foremost of an irrational character.