Superior competitiveness comes from positioning in an attractive industry and leveraging unique internal assets.
To understand where leads, we must dissect the anatomy of competitive strategy.
Synergy is the holy grail. Vertical integration (controlling suppliers or distributors) and horizontal integration (acquiring rivals) must pass the : Does this combination create more value than the sum of its parts? Hitt, R
To be strategically competitive, you must answer three questions every day:
Strategic Management: Concepts and Cases – Competitiveness and Globalization R. Duane Ireland
It balances the I/O (Industrial Organization) model , which suggests that the external environment is the primary determinant of success, with the Resource-Based View (RBV) , which argues that a firm’s unique internal resources and capabilities are the real drivers of competitive advantage.
is a cornerstone textbook in business education, primarily authored by Michael A. Hitt, R. Duane Ireland, and Robert E. Hoskisson . and Robert E. Hoskisson .
To know if a strategy is working, track:
Strategic management is the bundle of decisions and acts which a manager undertakes and which determines the result of the firm’s performance. The process begins with a thorough analysis. Before a company can decide where it wants to go, it must understand where it currently stands. This involves examining the external environment—scanning for opportunities and threats—as well as the internal environment to identify unique strengths and weaknesses.