this is perhaps one of the most perplexing and enduring questions in management and business history.
Ansoff, Mintzberg, Porter and Hambrick are amongst the most renowned scholars who have tried to provide a compelling answer for this question.
given this , in a new series of post i am going to publish, i have planned to give you a brief overview of these thoughts
i begin with Michale Porter, professor porter is recognized as the father of modern strategic management , his article in 1996 HBR ( what is strategy) is also a landmark and watershed piece of scholarship in strategy literature and explained nicely what strategy is form the perspective of industrial organization (IO)
following the industrial organization paradigm , and famous five-forces model in Porterian school of strategy , strategy means positioning
when a firm formulates a strategy it sets a plan (a series of processes, procedures, decisions and actions) in order to position itself differently in the market.
when it is said that differentiation either in cost structures or in product mix ( innovation) is the essence of strategy it falls into porterian school of strategy.
firms who follow this mindset are differentiators who see competitiveness and supremacy in being constantly different and gain profit our of their position.
these firms are able to achieve economies of scale and economies of scope and hence monopolize themselves
can you name some cases in this school?
in the next post i will explain other schools and compare them
Ansoff, Mintzberg, Porter and Hambrick are amongst the most renowned scholars who have tried to provide a compelling answer for this question.
given this , in a new series of post i am going to publish, i have planned to give you a brief overview of these thoughts
i begin with Michale Porter, professor porter is recognized as the father of modern strategic management , his article in 1996 HBR ( what is strategy) is also a landmark and watershed piece of scholarship in strategy literature and explained nicely what strategy is form the perspective of industrial organization (IO)
following the industrial organization paradigm , and famous five-forces model in Porterian school of strategy , strategy means positioning
when a firm formulates a strategy it sets a plan (a series of processes, procedures, decisions and actions) in order to position itself differently in the market.
thus according to porter (1996): strategy is doing things differently or doing different things
when it is said that differentiation either in cost structures or in product mix ( innovation) is the essence of strategy it falls into porterian school of strategy.
firms who follow this mindset are differentiators who see competitiveness and supremacy in being constantly different and gain profit our of their position.
these firms are able to achieve economies of scale and economies of scope and hence monopolize themselves
competitive position of firms in this view is ultimately sustained by their monopoly market power
can you name some cases in this school?
in the next post i will explain other schools and compare them
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