Author Biography xiii
Preface to the Eleventh Edition xv
Matching Cases to Chapters xvi
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 8
What Is Strategy? Why Do Firms Need It? 10
Locating and Describing Strategy 14
How Is Strategy Made? The Strategy Process 18
Strategic Management of Not-For-Profit Organizations 21
Summary 24
Self-Study Questions 25
Notes 26
Part II The Tools Of Strategy Analysis 27
2 Goals, Values, and Performance 29
Introduction and Objectives 30
Strategy as a Quest for Value 31
Profit, Cash Flow, and Enterprise Value 34
Putting Performance Analysis into Practice 38
Beyond Profit: Values and Corporate Social Responsibility 45
Beyond Profit: Strategy and Real Options 49
Summary 51
Self-Study Questions 52
Notes 52
3 Industry Analysis: The Fundamentals 54
Introduction and Objectives 55
From Environmental Analysis to Industry Analysis 55
Analyzing Industry Attractiveness 57
Applying Industry Analysis to Forecasting Industry Profitability 65
Using Industry Analysis to Develop Strategy 66
Defining Industries: Where to Draw the Boundaries 68
From Industry Attractiveness to Competitive Advantage: Identifying Key Success Factors 70
Summary 73
Self-Study Questions 74
Notes 74
4 Further Topics in Industry and Competitive Analysis 76
Introduction and Objectives 77
The Limits of Industry Analysis 77
Beyond the Five Forces: Complements, Ecosystems, and Business Models 79
Competitive Interaction: Game Theory and Competitor Analysis 83
Segmentation and Strategic Groups 89
Summary 93
Self-Study Questions 94
Notes 94
5 Analyzing Resources and Capabilities 97
Introduction and Objectives 98
The Role of Resources and Capabilities in Strategy Formulation 98
Identifying Resources and Capabilities 102
Appraising Resources and Capabilities 108
Developing Strategy Implications 112
Summary 116
Self-Study Questions 117
Notes 118
6 Organization Structure and Management Systems: The Fundamentals of Strategy Implementation 119
Introduction and Objectives 120
Strategy Formulation and Strategy Implementation 121
The Fundamentals of Organizing: Specialization, Cooperation, and Coordination 123
Developing Organizational Capability 126
Organization Design 129
Summary 136
Self-Study Questions 136
Notes 137
Part III Business Strategy And The Quest For Competitive Advantage 139
7 The Sources and Dimensions of Competitive Advantage 141
Introduction and Objectives 142
How Is Competitive Advantage Established? 142
How Is Competitive Advantage Sustained? 148
Cost Advantage 151
Differentiation Advantage 158
Can Firms Pursue Both Cost and Differentiation Advantage? 168
Summary 169
Self-Study Questions 169
Notes 170
8 Industry Evolution and Strategic Change 173
Introduction and Objectives 174
The Industry Life Cycle 175
The Challenge of Organizational Adaptation and Strategic Change 182
Managing Strategic Change 187
Summary 197
Self-Study Questions 197
Notes 198
9 Technology-Based Industries and the Management of Innovation 201
Introduction and Objectives 202
Competitive Advantage in Technology-Intensive Industries 202
Strategies to Exploit Innovation 209
Standards, Platforms, and Network Externalities 214
Implementing Technology Strategies 220
Summary 227
Self-Study Questions 228
Notes 228
Part IV Corporate Strategy 231
10 Vertical Integration and the Scope of the Firm 233
Introduction and Objectives 234
Transaction Costs and the Scope of the Firm 234
The Benefits and Costs of Vertical Integration 238
Designing Vertical Relationships 245
Summary 248
Self-Study Questions 248
Notes 249
11 Global Strategy and the Multinational Corporation 251
Introduction and Objectives 252
Implications of International Competition for Industry Analysis 253
Analyzing Competitive Advantage in an International Context 254
Internationalization Decisions: Locating Production 258
Internationalization Decisions: Entering a Foreign Market 261
Multinational Strategies: Global Integration versus National Differentiation 263
Implementing International Strategy: Organizing the Multinational Corporation 269
Summary 275
Self-Study Questions 275
Notes 276
12 Diversification Strategy 278
Introduction and Objectives 279
Motives for Diversification 280
Competitive Advantage from Diversification 284
Diversification and Performance 289
The Meaning of Relatedness in Diversification 290
Summary 291
Self-Study Questions 292
Notes 293
13 Implementing Corporate Strategy: Managing the Multibusiness Firm 295
Introduction and Objectives 296
The Role of Corporate Management 297
Managing the Corporate Portfolio 297
Managing Linkages across Businesses 299
Managing Individual Businesses 303
Managing Change in the Multibusiness Corporation 308
Governance of Multibusiness Corporations 312
Summary 316
Self-Study Questions 316
Appendix: External Growth Strategies: Mergers, Acquisitions, Alliances 317
Notes 323
14 Current Trends in Strategic Management 326
Introduction 327
The New Environment of Business 327
New Directions in Strategic Thinking 329
Redesigning Organizations 332
The Changing Role of Managers 334
Summary 335
Notes 335
Cases To Accompany Contemporary Strategy Analysis, Eleventh Edition
1 Peloton Interactive, Inc.: Creating New Market Space in the Home Fitness Sector 337
2 Kering SA: How Does Its Performance Compare to That of LVMH? 348
3 Pot of Gold? The US Legal Marijuana Industry 359
4 The Lithium-Ion Battery Industry 371
5 Streaming Wars: Netflix versus Disney 384
6 BP: Organizational Structure and Management Systems 396
7 Starbucks Corporation: Sustaining Competitive Advantage 403
8 Eastman Kodak’s Quest for a Digital Future 413
9 Toyota: Seeking a Future in Hydrogen 430
10 Zara: Agility Through Vertical Integration 440
11 City Football Group: Building a Multinational Soccer Enterprise 450
12 Google Is Now Alphabet—But What’s the Corporate Strategy? 462
13 How Do You Solve a Problem Like General Electric? 475
14 Haier Group: Reinventing the Industrial Corporation 490
Glossary G-1
Index I-1
