Description
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- Title Page
- Copyright Page
- CONTENTS
- 1 INTRODUCTION
- 1.1 Strategic Management
- 1.2 The Role of Business Strategy
- Examples: Dell Computer and Compaq Computer
- The Dynamics of Business Strategy
- Strategic Planning versus Strategic Thinking
- 1.3 The Organization and Its Objectives
- Performance: Overarching Objectives
- Firms and Managers
- 1.4 Perspectives on the Impact of the General Manager
- 1.5 Organization of the Book
- 2 BUSINESS STRATEGY
- 2.1 Introduction
- 2.2 Describing Business Strategy
- Goals
- Scope
- Competitive Advantage
- Logic
- 2.3 Relationship of Strategy to Mission, Purpose, Values, and Vision
- Mission, Purpose, and Values
- Vision
- 2.4 The Strategy Statement
- Benefits of an Explicit Strategy Statement
- The Form and Use of the Strategy Statement
- An Example: Borders Books
- 2.5 Developing Strategy: The Strategy Process
- Strategy Identification
- Strategy Evaluation: Testing the Logic
- Strategy Process and Strategic Change
- 2.6 Summary
- 3 COMPETITIVE ADVANTAGE
- 3.1 Introduction
- 3.2 Value and Competitive Advantage
- 3.3 Two Main Routes to Competitive Advantage
- Position
- Capabilities
- 3.4 Sustainable Competitive Advantage
- Capability as Sustainable Competitive Advantage
- Position as Sustainable Competitive Advantage
- 3.5 The Relationship of Position to Capabilities
- 3.6 Position, Capabilities, and “The Resource-Based View of the Firm”
- 3.7 The Cost-Quality Frontier and Competitive Advantage
- Product Quality and Cost
- A Cost-Quality Framework
- Using the Cost-Quality Frontier to Illustrate Competitive Advantage: An Example
- 3.8 Summary
- 4 INTERNAL CONTEXT: ORGANIZATION DESIGN
- 4.1 Introduction
- 4.2 Organization Design and Competitive Advantage
- 4.3 Strategy and Organization at Southwest Airlines
- Southwest’s Strategy and Performance
- Southwest’s Organization
- Comparisons to Other Airlines
- Summary: Consistency and Alignment
- 4.4 The Challenge of Organization Design
- The Coordination Problem
- The Incentive Problem
- 4.5 Meeting the Challenge
- Architecture: Structure
- Architecture: Compensation and Rewards
- Routines
- Culture
- 4.6 ARC Analysis
- 4.7 Summary
- 5 ORGANIZATION AND COMPETITIVE ADVANTAGE
- 5.1 Introduction
- 5.2 Aligning Strategy and Organization
- Applying ARC Analysis to Assess Strategic Alignment: Southwest Airlines Revisited
- Other Examples: Sony, Apple Computer, and Silicon Graphics
- 5.3 Building and Creating Competitive Advantage
- Explorers and Exploiters
- Interdependence and Tight-Coupling
- Organizational Slack
- Central Direction
- The ARC of Explorers and Exploiters
- 5.4 Combining Exploration and Exploitation
- 5.5 Costs of Organizational Change
- 5.6 Summary
- 6 EXTERNAL CONTEXT: INDUSTRY ANALYSIS
- 6.1 Introduction
- 6.2 The Effects of Industry Characteristics on Firm Performance
- 6.3 Organizing Industry Analysis
- 6.4 A Framework for Industry Analysis
- Value Creation: Potential Industry Earnings (PIE)
- Determinants of PIE
- An Example of Value Creation: Lobster PIE
- Capturing Value: Dividing PIE
- Competition
- Entry and Incumbency Advantage
- An Example of the Effects of Competition and Entry
- Vertical Power: Buyer or Supplier Power
- Dividing the Lobster PIE
- 6.5 Industry Definition
- Industry Definition Based on “Close” Substitutes
- Industry Definitions for Systems of Complementary Products
- 6.6 Summary
- 7 THE SPECTRUM OF COMPETITION AND NICHE MARKETS
- 7.1 Introduction
- 7.2 The Spectrum of Competition
- Structure and Behavior
- 7.3 Niche Markets and Product Differentiation
- Building, Defending, and Exploiting a Market Niche: Benetton and the Gap
- 7.4 Consumer Preferences and Product Differentiation
- Preferences and Products
- Horizontal and Vertical Product Differentiation
- 7.5 Differentiation and Competition
- Niches and Neighbors
- Differentiation Softens Competition
- Price Competition and Market Share
- 7.6 Product Positioning
- 7.7 Summary
- Appendix Monopoly, Competition, and Niche Markets
- Monopoly
- Perfect Competition
- Niche Markets
- 8 COMPETITION IN CONCENTRATED MARKETS
- 8.1 Introduction
- 8.2 Oligopoly: The Elements of Strategic Interaction
- Differences in Actions
- Timing
- Players
- Information
- Repetition
- Summary
- 8.3 Dominant Firms
- 8.4 Antitrust
- Collusion and Antitrust
- 8.5 Summary
- 9 ENTRY AND THE ADVANTAGE OF INCUMBENCY
- 9.1 Introduction
- 9.2 Types of Incumbency Advantage
- Scale Advantages
- Incumbency Advantage from Cumulative Investment
- Incumbency Advantage from Consumer Loyalty
- Incumbency Advantage from Switching Costs and Demand-Side Increasing Returns
- Incumbency Advantage from Sunk Costs
- Firm Scope
- 9.3 Entry Barriers at Work
- 9.4 Strategically Creating Incumbency Advantage
- Packing the Product Space
- Blocking Entry through Contract or Vertical Integration
- Signaling to Prevent Entry
- Entry Barriers and Antitrust
- 9.5 Summary
- 10 CREATING AND CAPTURING VALUE IN THE VALUE CHAIN
- 10.1 Introduction
- 10.2 Value Creation and Value Capture
- 10.3 The Value Chain and Buyer or Supply Power
- 10.4 Capturing Value
- Value Capture without Buyer or Supplier Power
- Value Capture by a Single Powerful Supplier (or Buyer)
- Value Capture When Buyers and Suppliers Are Powerful
- Reducing Power in Other Segments
- 10.5 Creating Value
- Opportunities for Creating Value: The Coordination Problem
- Contracting to Create Value: The Incentive Problem
- 10.6 Summary
- Appendix Price Discrimination
- 11 STRATEGIC MANAGEMENT IN A CHANGING ENVIRONMENT
- 11.1 Introduction
- 11.2 The Evolution of the U.S. Automobile Industry
- 11.3 Change and Competitive Advantage
- 11.4 Industry Life Cycle
- Emergence
- Growth
- Maturity and Decline
- 11.5 The Evolution of Industry Organization
- Horizontal vs. Vertical Organization
- Organizational Implications of Industry Structure
- 11.6 Managing Strategic Change
- Overcoming the Barriers to Strategic Change
- Managing Under Uncertainty: Scenario Analysis
- Strategic Change: An Example
- 11.7 Summary
- 12 STRATEGY IN MARKETS WITH DEMAND-SIDE INCREASING RETURNS
- 12.1 Introduction
- 12.2 Sources of Demand-Side Increasing Returns (DSIR)
- Compatibility Benefits
- Network Benefits
- 12.3 Competition in Markets with Demand-Side Increasing Returns
- Installed Base and Tipping
- Competitive Strategies for Building DSIR
- 12.4 Systems of Components
- System Compatibility
- Leveraging Market Position
- 12.5 Technology Adoption
- 12.6 Managing the Adoption Process
- Marketing to Create Momentum
- Leveraging Reputation
- Committing to “Open” Standards
- Winning Over An Influential Buyer
- Advance Sign-Ups
- Winks at Pirates
- Leasing
- Price Commitments
- 12.7 Standards-Setting Processes
- 12.8 Summary
- 13 GLOBALIZATION AND STRATEGY
- 13.1 Introduction
- 13.2 Implications for Managers
- 13.3 Strategic Gains from Globalization
- 13.4 Globalization of Industries and Economies
- 13.5 Strategic Challenges
- The Challenge of Local Responsiveness
- The Challenge of Global Efficiency
- The Challenge of Learning
- 13.6 Organizing to Meet the Challenge
- Federated vs. Centralized
- Building the Middle Ground
- The Regional Organization
- Locational Advantage
- The Transnational Corporation
- 13.7 Summary
- 14 CORPORATE STRATEGY: MANAGING FOR VALUE IN A MULTIBUSINESS COMPANY
- 14.1 Introduction
- 14.2 A Framework for Corporate Strategy
- Managing Strategic Spillovers
- A Framework for Corporate Strategy
- 14.3 Does Corporate Add Value?
- The Performance of Diversified Firms
- 14.4 Strategic Spillovers and Competitive Advantage
- Identifying and Managing Spillovers
- Sources of Spillovers
- 14.5 Levers: Resource Allocation and Organization Design
- Resource Allocation
- Organization Design
- Corporate Direction
- 14.6 Summary
- 15 THE STRATEGY PROCESS
- 15.1 Introduction
- 15.2 Some Principles of the Strategy Process
- 15.3 Business Strategy Process
- Strategy Identification
- Strategy Evaluation
- Developing and Evaluating Strategic Options
- Selecting and Communicating the Strategy
- Strategy Process in a Rapidly Changing Environment
- 15.4 Strategic Plans
- 15.5 The Evolution of Strategy
- Autonomous and Intentional Strategic Changes
- 15.6 Corporate Strategic Processes
- Corporate Strategy Processes for Strategically Independent Businesses
- Corporate Strategy for Strategically Interdependent Businesses
- The Role of General Managers
- 15.7 Concluding Remarks
- APPENDIX APPLYING GAME THEORY TO STRATEGIC MANAGEMENT
- A.1 Introduction
- A.2 A Famous Example: The Prisoners’ Dilemma
- A.3 Nash Equilibrium and Duopoly
- A.4 The Effect of Repetition
- A.5 Credibility, Commitment, and Flexibility
- The Value of Flexibility: Real Options
- Commitment and Credibility
- A.6 Strategic Behavior in the Presence of Asymmetric Information
- A.7 Summary
- CREDITS
- INDEX
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