Contemporary Strategy Analysis

Preface to Tenth Edition xv PART I INTRODUCTION 1 1 The Concept of Strategy 3 Introduction and Objectives 4 The Role of Strategy in Success 4 The Basic Framework for Strategy Analysis 9 A Brief History of Business Strategy 12 Strategy Today 15 How Is Strategy Made? The Strategy Process 21 Strategic Management of Not-For-Profit Organizations 25 Summary 28 Self-Study Questions 29 Notes 30 PART II THE TOOLS OF STRATEGY ANALYSIS 33 2 Goals, Values, and Performance 35 Introduction and Objectives 36 Strategy as a Quest for Value 37 Profit, Cash Flow, and Enterprise Value 41 Putting Performance Analysis into Practice 43 Beyond Profit: Values and Corporate Social Responsibility 51 Beyond Profit: Strategy and Real Options 55 Summary 58 Self-Study Questions 59 Notes 60 3 Industry Analysis: The Fundamentals 63 Introduction and Objectives 64 From Environmental Analysis to Industry Analysis 64 Analyzing Industry Attractiveness 66 Applying Industry Analysis to Forecasting Industry Profitability 76 Using Industry Analysis to Develop Strategy 77 Defining Industries: Where to Draw the Boundaries 80 From Industry Attractiveness to Competitive Advantage: Identifying Key Success Factors 82 Summary 86 Self-Study Questions 87 Notes 87 4 Further Topics in Industry and Competitive Analysis 90 Introduction and Objectives 91 Limits of Industry Analysis 91 Beyond the Five-Forces: Complements, Ecosystems, and Business Models 93 Competitive Interaction: Game Theory and Competitor Analysis 99 Segmentation and Strategic Groups 107 Summary 112 Self-Study Questions 113 Notes 114 5 Analyzing Resources and Capabilities 113 Introduction and Objectives 114 The Role of Resources and Capabilities in Strategy Formulation 114 Identifying Resources and Capabilities 118 Appraising Resources and Capabilities 126 Developing Strategy Implications 130 Summary 136 Self-Study Questions 137 Notes 138 6 Organization Structure and Management Systems: The Fundamentals of Strategy Implementation 144 Introduction and Objectives 145 Strategy Formulation and Strategy Implementation 146 The Fundamentals of Organizing: Specialization, Cooperation, and Coordination 149 Developing Organizational Capability 153 Organization Design 156 Summary 165 Self-Study Questions 165 Notes 166 PART III BUSINESS STRATEGY AND THE QUEST FOR COMPETITIVE ADVANTAGE 165 7 The Sources and Dimensions of Competitive Advantage 167 Introduction and Objectives 168 How Competitive Advantage Is Established and Sustained 168 Types of Competitive Advantage: Cost and Differentiation 178 Cost Analysis 178 Differentiation Analysis 186 Implementing Cost and Differentiation Strategies 197 Summary 200 Self-Study Questions 200 Notes 201 8 Industry Evolution and Strategic Change 205 Introduction and Objectives 206 The Industry Life Cycle 207 The Challenge of Organizational Adaptation and Strategic Change 216 Managing Strategic Change 221 Summary 235 Self-Study Questions 236 Notes 237 9 Technology-based Industries and the Management of Innovation 241 Introduction and Objectives 242 Competitive Advantage in Technology-intensive Industries 243 Strategies to Exploit Innovation: How and When to Enter 250 Standards, Platforms, and Network Externalities 255 Platform-based Markets 258 Implementing Technology Strategies: Creating the Conditions for Innovation 262 Accessing External Sources of Innovation 263 Summary 269 Self-Study Questions 270 Notes 271 10 Competitive Advantage in Mature Industries 273 Introduction and Objectives 274 Competitive Advantage in Mature Industries 274 Strategy Implementation in Mature Industries: Structure, Systems, and Style 280 Strategies for Declining Industries 282 Summary 286 Self-Study Questions 286 Notes 287 PART IV CORPORATE STRATEGY 289 11 Vertical Integration and the Scope of the Firm 291 Introd