Strategic management and competitive advantage: concepts [5th edition] 9780133129304, 129205767X, 9781292057675, 0133129306

Table of contents :
Cover......Page 1
Title Page......Page 5
Copyright......Page 6
Brief Contents......Page 9
Contents......Page 11
Part1: The Tools of Strategic Analysis......Page 25
Opening Case: Why Are These Birds So Angry?......Page 26
The Strategic Management Process......Page 28
What Is Competitive Advantage?......Page 32
The Strategic Management Process, Revisited......Page 34
Accounting Measures of Competitive Advantage......Page 35
Strategy in Depth: The Business Model Canvas......Page 36
Economic Measures of Competitive Advantage......Page 40
Emergent Versus Intended Strategies......Page 42
Ethics and Strategy: Stockholders Versus Stakeholders ......Page 44
Strategy in the Emerging Enterprise: Emergent Strategies and Entrepreneurship......Page 45
Summary......Page 46
Challenge Questions......Page 47
Problem Set......Page 48
End Notes......Page 49
Opening Case: iTunes and the Streaming Challenge......Page 50
Understanding a Firm’s General Environment......Page 52
The Structure-Conduct-Performance Model of Firm Performance......Page 55
Ethics and Strategy: Is a Firm Gaining a Competitive Advantage Good for Society?......Page 56
A Model of Environmental Threats......Page 57
Threat from New Competition......Page 58
Strategy in Depth: Environmental Threatsand the S-C-P Model......Page 59
Threat from Existing Competitors......Page 64
Threat of Substitute Products......Page 65
Threat of Supplier Leverage......Page 66
Threat from Buyers’ Influence......Page 67
Environmental Threats and Average Industry Performance......Page 68
Another Environmental Force: Complementors......Page 69
Industry Structure and Environmental Opportunities......Page 71
Opportunities in Fragmented Industries:Consolidation......Page 72
Opportunities in Emerging Industries: First-Mover Advantages......Page 73
Opportunities in Mature Industries: Product Refinement, Service, and Process Innovation......Page 75
Strategy in the Emerging Enterprise: Microsoft Grows Up......Page 77
Opportunities in Declining Industries: Leadership, Niche, Harvest, and Divestment......Page 78
Summary......Page 80
Problem Set......Page 82
End Notes......Page 83
Opening Case: When a Noun Becomes a Verb......Page 86
What Are Resources and Capabilities?......Page 88
Critical Assumptions of the Resource-Based View......Page 89
The VRIO Framework......Page 90
The Question of Value......Page 91
Strategy in the Emerging Enterprise: Are Business Plans Good for Entrepreneurs?......Page 93
Ethics and Strategy: Externalities and the Broader Consequences of Profit Maximization......Page 95
The Question of Rarity......Page 96
The Question of Imitability......Page 97
The Question of Organization......Page 102
Research Made Relevant: Strategic Human Resource Management Research......Page 103
Applying the VRIO Framework......Page 105
Applying the VRIO Framework to Southwest Airlines......Page 106
Imitation and Competitive Dynamics in an Industry......Page 108
Not Responding to Another Firm’s Competitive Advantage......Page 109
Changing Tactics in Response to Another Firm’s Competitive Advantage......Page 110
Where Does the Responsibility for Competitive Advantage in a Firm Reside?......Page 112
Difficult-to-Implement Strategies......Page 114
Socially Complex Resources......Page 115
Summary......Page 116
Problem Set......Page 118
End Notes......Page 119
Part 2: Business-Level Strategies......Page 123
Opening Case: The World’s Lowest-Cost Airline......Page 124
Sources of Cost Advantages......Page 126
Research Made Relevant: How Valuable Is Market Share—Really?......Page 133
The Value of Cost Leadership......Page 135
Cost Leadership and Environmental Threats......Page 136
Strategy in Depth: The Economics of Cost Leadership......Page 137
The Rarity of Sources of Cost Advantage......Page 138
The Imitability of Sources of Cost Advantage......Page 139
Organizing to Implement Cost Leadership......Page 143
Strategy in the Emerging Enterprise: The Oakland A’s: Inventing a New Way to Play Competitive Baseball......Page 144
Organizational Structure in Implementing Cost Leadership......Page 145
Management Controls in Implementing Cost Leadership......Page 147
Summary......Page 148
Challenge Questions......Page 149
Problem Set......Page 150
End Notes......Page 151
Opening Case: Who Is Victoria, and What Is Her Secret?......Page 152
What Is Product Differentiation?......Page 154
Bases of Product Differentiation......Page 155
Research Made Relevant: Discovering the Bases of Product Differentiation......Page 157
Product Differentiation and Creativity......Page 160
Product Differentiation and Environmental Threats......Page 161
Strategy in Depth: The Economics of Product Differentiation......Page 162
Product Differentiation and Environmental Opportunities......Page 163
Rare Bases for Product Differentiation......Page 164
Ethics and Strategy: Product Claims and the Ethical Dilemmas in Health Care......Page 165
The Imitability of Product Differentiation......Page 166
Organizing to Implement Product Differentiation......Page 171
Management Controls and Implementing Product Differentiation......Page 172
Strategy in the Emerging Enterprise: Going in Search of Blue Oceans......Page 173
Can Firms Implement Product Differentiation and Cost Leadership Simultaneously?......Page 176
No: These Strategies Cannot Be ImplementedSimultaneously......Page 177
Yes: These Strategies Can Be ImplementedSimultaneously......Page 178
Summary......Page 179
Challenge Questions......Page 180
Problem Set......Page 181
End Notes......Page 182
Part 3: Corporate Strategies......Page 183
Opening Case: Outsourcing Research......Page 184
What Is Vertical Integration?......Page 186
The Value of Vertical Integration......Page 187
Strategy in Depth: Measuring Vertical Integration......Page 188
Vertical Integration and the Threat of Opportunism......Page 189
Vertical Integration and Firm Capabilities......Page 191
Vertical Integration and Flexibility......Page 192
Research Made Relevant: Empirical Tests of Theories of Vertical Integration......Page 194
Vertical Integration and Sustained Competitive Advantage......Page 196
Ethics and Strategy: The Ethics of Outsourcing......Page 197
The Imitability of Vertical Integration......Page 199
Organizational Structure and Implementing Vertical Integration......Page 200
Strategy in the Emerging Enterprise: Oprah, Inc.......Page 201
Management Controls and Implementing Vertical Integration......Page 202
Compensation in Implementing Vertical Integration Strategies......Page 203
Summary......Page 205
Problem Set......Page 207
End Notes......Page 208
Opening Case: The Worldwide Leader......Page 210
Types of Corporate Diversification......Page 212
Limited Corporate Diversification......Page 213
Related Corporate Diversification......Page 214
What Are Valuable Economies of Scope?......Page 215
Research Made Relevant: How Valuable Are Economies of Scope, on Average?......Page 216
Strategy in the Emerging Enterprise: Gore-Texand Guitar Strings......Page 223
Can Equity Holders Realize These Economies of Scope on Their Own?......Page 231
Ethics and Strategy: Globalization and the Threat of the Multinational Firm......Page 232
Corporate Diversification and Sustained Competitive Advantage......Page 233
Strategy in Depth: Risk-Reducing Diversificationand a Firm’s Other Stakeholders......Page 234
The Rarity of Diversification......Page 235
The Imitability of Diversification......Page 236
Summary......Page 237
Problem Set......Page 238
End Notes......Page 240
Opening Case: And Then There Is Berkshire Hathaway......Page 242
Organizational Structure and Implementing Corporate Diversification......Page 244
The Board of Directors......Page 245
Strategy in Depth: Agency Conflicts Between Managers and Equity Holders......Page 247
Research Made Relevant: The Effectiveness of Boards of Directors......Page 248
Institutional Owners......Page 249
The Senior Executive......Page 250
Corporate Staff......Page 251
Division General Manager......Page 253
Shared Activity Managers......Page 254
Management Controls and Implementing Corporate Diversification......Page 255
Evaluating Divisional Performance......Page 256
Allocating Corporate Capital......Page 259
Transferring Intermediate Products......Page 260
Strategy in the Emerging Enterprise: Transforming Big Business into Entrepreneurship......Page 263
Ethics and Strategy: Do CEOs Get Paid Too Much?......Page 264
Challenge Questions......Page 266
Problem Set......Page 267
End Notes......Page 268
Opening Case: Breaking Up Is Hard to Do: Apple and Samsung......Page 270
What Is a Strategic Alliance?......Page 272
Strategic Alliance Opportunities......Page 273
Strategy in Depth: Winning Learning Races......Page 276
Research Made Relevant: Do Strategic Alliances Facilitate Tacit Collusion?......Page 279
Alliance Threats: Incentives to Cheat on StrategicAlliances......Page 280
Moral Hazard......Page 281
Holdup......Page 282
Strategy in the Emerging Enterprise: Disney and Pixar......Page 283
The Rarity of Strategic Alliances......Page 284
The Imitability of Strategic Alliances......Page 285
Ethics and Strategy: When It Comes to Alliances, Do “Cheaters Never Prosper”?......Page 286
Organizing to Implement Strategic Alliances......Page 289
Equity Investments......Page 290
Firm Reputations......Page 291
Joint Ventures......Page 292
Trust......Page 293
Summary......Page 294
Problem Set......Page 295
End Notes......Page 296
Opening Case: The Google Acquisition Machine......Page 298
What Are Mergers and Acquisitions?......Page 300
Mergers and Acquisitions: The Unrelated Case......Page 301
Mergers and Acquisitions: The Related Case......Page 302
What Does Research Say About Returns to Mergers and Acquisitions?......Page 306
Strategy in the Emerging Enterprise: Cashing Out......Page 307
Why Are There So Many Mergers and Acquisitions?......Page 308
Strategy in Depth: Evaluating the Performance Effects of Acquisitions......Page 310
Mergers and Acquisitions and Sustained Competitive Advantage......Page 311
Valuable, Rare, and Private Economies of Scope......Page 312
Valuable, Rare, and Costly-to-Imitate Economiesof Scope......Page 313
Implications for Bidding Firm Managers......Page 314
Implications for Target Firm Managers......Page 319
Organizing to Implement a Merger or Acquisition......Page 320
Special Challenges in Post-Merger Integration......Page 321
Research Made Relevant: The Wealth Effectsof Management Responses to Takeover Attempts......Page 322
Summary......Page 326
Problem Set......Page 327
End Notes......Page 328
Opening Case: The Baby Formula Problem......Page 330
Strategy in the Emerging Enterprise: International Entrepreneurial Firms: The Case of Logitech......Page 332
The Value of International Strategies......Page 333
Internationalization and Firm Revenues......Page 334
Strategy in Depth: Countertrade......Page 338
Internationalization and Product Life Cycles......Page 339
Labor......Page 340
Ethics and Strategy: Manufacturing Tragedies and International Business......Page 341
Technology......Page 342
Learning from International Operations......Page 343
To Manage Corporate Risk......Page 345
Research Made Relevant: Family Firms in the Global Economy......Page 346
The Local Responsiveness/International Integration Trade-Off......Page 347
Financial Risks: Currency Fluctuation and Inflation......Page 349
Political Risks......Page 350
Research on the Value of International Strategies......Page 352
The Rarity of International Strategies......Page 353
The Imitability of International Strategies......Page 354
Becoming International: Organizational Options......Page 356
Summary......Page 361
Challenge Questions......Page 362
Problem Set......Page 363
End Notes......Page 364
Analyzing Cases andPreparingfor Class Discussions......Page 367
Glossary......Page 371
G......Page 379
R......Page 380
Z......Page 381
D......Page 382
K......Page 383
R......Page 384
W......Page 385
Z......Page 386
B......Page 387
C......Page 388
E......Page 389
G......Page 390
I......Page 391
M......Page 392
P......Page 393
R......Page 394
S......Page 395
U......Page 396
Z......Page 397