Modern Competitive Strategy

Cover
Title
Contents
Part 1: Strategy and Strategic Decision Making Chapter
	1. What Is Strategy?
		Why Study Business Strategy?
		What Defines a Successful Strategy?
		How Important Is Strategy, Really?
		The Origins of Strategy
		Strategic Planning and Strategy Execution
		Industry Analysis
		Strategy over Time: Growth and Innovation
		Outsourcing, Vertical Integration, and Strategic Alliances
		Global Strategy
		Strategy in Multibusiness Firms
		Corporate Governance
		Summary
		End Notes
	2. Strategic Planning and Decision Making
		What Is Strategic Planning?
		Planning in a Single Business
			Statement of Intent and Business Scope: Vision and Mission
			Analysis of Industry Structure and Trends
			Statement of Financial Goals and Related Metrics
			The Planning Period
			Financial and Operating Metrics
			S & P Key Financial Ratios and Bond Ratings
			Setting Goals
			Development of Strategic Initiatives
			Programs to Implement Strategic Initiatives
			Program Accountability and Schedule
			Program Valuation
		Planning in Multibusiness Firms
			Resource Allocation
			Portfolio Management
			Interbusiness Relationships
			Centralization of Activities
			Top-down Initiatives
			Corporate Infrastructure
		Summary
		Questions for Practice
		End Notes
Part 2: Building Competitive Advantage Chapter
	3. Competitive Advantage
		Introduction
		Competitive Positioning with Customers
			The Value–Cost Framework
			Value versus Cost Advantage
			Value and Cost Drivers
			Cost Drivers
		Isolating Mechanisms
			Preventing Imitation
			Increasing Customer Retention
		Summary
		Questions for Practice
		End Notes
	4. Industry Analysis
		Introduction
		Defining Industry Boundaries
		How Industry Forces Influence Profitability
		Industry Forces That Drive Profits Down: The Five Forces
			Competition
			Entrants and Entry Barriers
			Buyers
			Suppliers
			Substitutes
		Industry Forces that Drive Profits Up: The Value Net
			Complementors
			Cooperation with Buyers and Suppliers
			Coordination among Competitors
		Strategic Groups
		Summary
		Questions for Practice
		End Notes
	5. Competing over Time
		Introduction
		The Stages of Industry Evolution
		Stage One—Growth
			Dynamic Capabilities and the Growth of the Firm
			Developing Scalable Value and Cost Drivers
			Early Mover Advantage
			Strategic Pricing
		Stage Two—Shakeout
			The Maturation of the Product Life Cycle
			The Emergence of a Dominant Design
			Shakeout Duration and Severity
		Stage Three—Maturity
			Decline in the Market Growth Rate
			An Increase in Buyer Experience
			The Concentration of Market Share among Similar Large Firms
			The Persistence of Niche Markets
		Industry Disruption
			Technological Substitution
			Sustaining and Disruptive Technologies
			Disruption by Regulatory Change
		Summary
		Questions for Practice
		End Notes
	6. Strategy Execution
		Introduction
		The Basic Elements of Strategy Execution: Resources and Capabilities
			Resources
			Capabilities
		Relating Resources and Capabilities
		Building Capabilities
			The Value Chain
			Activity Systems
		The Organizational Dimensions of Capability Development
			Complementarity and Consistency
			Control and Coordination Systems
			Compensation and Incentive Systems
			Piece Rate
		Culture and Learning
			Culture
			Learning
		Summary
		Questions for Practice
		End Notes
Part 3: Managing the Boundaries of the Firm Chapter
	7. Vertical Integration and Outsourcing
		Introduction
		The Employment Relationship
		Transaction Cost Theory
		The Property Rights Approach
		Strategy and Control
			Control over the Supplier’s Price
			Control over the Supplier’s Investment Decisions
			Control over Incentives
			Control over Information
		Strategy and Relative Capability
		The Strategic Sourcing Framework
			Explaining Vertical Integration
			Explaining Outsourcing
		Hybrid Sourcing Arrangements
		Additional Issues
			Differences among Types of Uncertainty
			The Problem of Consistency
			Industry Dynamics
		Summary
		Questions for Practice
		End Notes
	8. Partnering
		Introduction
		Recent Trends in Partnership Formation
			Global Integration
			The Diffusion of Japanese Partnership Practices
			The Diffusion of Supplier Partnerships
			The Outsourcing Wave in Services
			The Rise of Supply Chain Management Practices
			The Growth of Technology-intensive Industries
			The Emergence of Cooperation in Regional Networks
		Motivations behind Partnerships
			Technology Transfer and Development
			Market Access
			Cost Reduction
			Risk Reduction
			Influence on Industry Structure
		The Disadvantages of Partnering
			Reduced Control over Decision Making
			Strategic Inflexibility
			Weaker Organizational Identity
			Antitrust Issues
		Partner Selection
			The Partner’s Current Capabilities
			The Partner’s Future Capabilities
			Alternative Partners
		Partnership Form
			Technology Transfer and Development
			Cost and Risk Reduction
		Managing Alliances
			Convergence of Purpose
			Consistency of Position
			Managing the Interface
		Alliance Dynamics
			Life of the Project
			Market Forces
			Dynamics within the Relationship
		Summary
		Questions for Practice
		End Notes
Part 4. Expanding the Scope of the Firm Chapter
	9. Global Strategy
		Introduction
		Why Do Regions Matter?
			Labor Pooling
			Specialized Local Suppliers
			Technological Spillovers
		Why Do Countries Matter?
			Laws and Regulations
			National Cultures
			Natural Resources and Geography
		Porter’s Diamond Model
		A Framework for Global Competition
			Nationally Segmented Industries
			Industries Vertically Integrated across Countries
			Horizontally Integrated Industries
			Vertically and Horizontally Integrated Industries
			The Global Configuration of Firms
			Changes in Configuration
		Modes of Entering Foreign Markets
		Organizing for Global Competition in a Single Business
		Summary
		Questions for Practice
		End Notes
	10. New Business Development
		Introduction
		The Process of New Business Development
		Motivations for Diversification
		Contributions of the Venture to the Corporation
			Risk Reduction
			Corporate Growth in Revenues and Earnings
			Repositioning Existing Businesses
		Making the New Business Successful
			Financial Capital as a Corporate Input
			Leveraging Resources
			Leveraging Capabilities in Activities
			Leveraging Entrepreneurial Capabilities
			Core Competence
			Leveraging Management Expertise in a Type of Strategy
		New Market Characteristics
		New Venture Governance
		New Business Acquisitions
			Merger Waves
			Acquisition Performance
			The Transaction
			The Turnaround or Integration of the Acquired Business
			Ongoing Operations
		Carve-outs
		Diversification in Different Nations
		Summary
		Questions for Practice
		End Notes
	11. Managing the Multibusiness Firm
		Introduction
		Managing the Internal Capital Market
		Managing the Portfolio of Businesses
		Relationships among the Business Units: Transfers and Centralization
			Interunit Transfers of Goods and Services
			The Centralization of Activities
			Centralizing Technology Development
		Top-down Initiatives
			Centralized Process Innovation at GE
		Developing Corporate Infrastructure
			Control and Coordination
			Compensation and Incentives
			Culture
		Summary
		Questions for Practice
		End Notes
Part 5: Governing the Firm Chapter
	12. Corporate Governance
		Introduction
		What Is Corporate Governance?
		Agency Theory
		The Board of Directors
			The Legal Duties of the Board
		The Fall of Enron
			The Response to the Collapse of Enron
		Board of Directors Effectiveness
		CEO Compensation
			Trends in CEO Compensation in the Health Insurance Industry
		Governance in Different Countries
		Summary
		Questions for Practice
		End Notes
Glossary
Index