Business Unit Strategy: Contexts and Special Dimensions


Generic strategies are useful for identifying broad frameworks within which a competitive advantage can be developed and exploited. However, to forecast the relative effectiveness of different options, strategists consider the context in which a strategy is to be implemented. To see how such analysis is done, in this chapter we examine six types of industry settings. First, we look at three contexts that relate to the various evolutionary stages of an industry: emerging, growth, mature, and declining. Next, we discuss four industry environments that pose unique strategic challenges: fragmented, deregulating, hypercompetitive, and Internet-based industries. Because ...

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