Chapter 8 - Tailoring strategy to fit specific industry and company situations. After completing this unit, you should be able to: Understand when and how business diversification can enhance shareholder value, gain an understanding of how related diversification strategies can produce cross-business strategic fits capable of delivering competitive advantage, become aware of the merits and risks of corporate strategies keyed to unrelated diversification,. | Tailoring Strategy to Fit Specific Industry and Company Situations Screen graphics created by: Jana F. Kuzmicki, . Troy University-Florida Region “In a turbulent age, the only dependable advantage is reinventing your business model before circumstances force you to. Gary Hamel and Liisa Valikangas Chapter Roadmap Strategies for Competing in Emerging Industries Strategies for Competing in Rapidly Growing Markets Strategies for Competing in Maturing Industries Strategies for Competing in Stagnant or Declining Industries Strategies for Competing in Turbulent, High-Velocity Markets Strategies for Competing in Fragmented Industries Strategies for Sustaining Rapid Company Growth Strategies for Industry Leaders Strategies for Runner-up Firms Strategies for Weak and Crisis-Ridden Businesses Ten Commandments for Crafting Successful Business Strategies Matching Strategy to a Company’s Situation Most important drivers shaping a firm’s strategic options fall into two categories Firm’s competitive capabilities, market position, best opportunities Nature of industry and competitive conditions New and unproven market Proprietary technology Lack of consensus regarding which of several competing technologies will win out Low entry barriers Experience curve effects may permit cost reductions as volume builds Buyers are first-time users and marketing involves inducing initial purchase and overcoming customer concerns First-generation products are expected to be rapidly improved so buyers delay purchase until technology matures Possible difficulties in securing raw materials Firms struggle to fund R&D, operations and build resource capabilities for rapid growth Features of an Emerging Industry Strategy Options for Competing in Emerging Industries Win early race for industry leadership by employing a bold, creative strategy Push hard to perfect technology, improve product quality, and develop attractive performance features Consider merging with or acquiring another firm to Gain . | Tailoring Strategy to Fit Specific Industry and Company Situations Screen graphics created by: Jana F. Kuzmicki, . Troy University-Florida Region “In a turbulent age, the only dependable advantage is reinventing your business model before circumstances force you to. Gary Hamel and Liisa Valikangas Chapter Roadmap Strategies for Competing in Emerging Industries Strategies for Competing in Rapidly Growing Markets Strategies for Competing in Maturing Industries Strategies for Competing in Stagnant or Declining Industries Strategies for Competing in Turbulent, High-Velocity Markets Strategies for Competing in Fragmented Industries Strategies for Sustaining Rapid Company Growth Strategies for Industry Leaders Strategies for Runner-up Firms Strategies for Weak and Crisis-Ridden Businesses Ten Commandments for Crafting Successful Business Strategies Matching Strategy to a Company’s Situation Most important drivers shaping a firm’s strategic options fall into two categories Firm’s .
