September 2021
Intermediate to advanced
414 pages
11h 3m
English
Content preview from The Financial Times Guide to Strategy, 5th Edition
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CHAPTER 2
AN ECOLOGICAL VIEW OF CORPORATE STRATEGY
Writers on Corporate Strategy generally fall into one of two competing camps. In the red corner, there is the positioning or portfolio-based approach. This says that companies should seek to be in attractive markets where the firm can establish a competitive advantage. The high priest of this movement is Harvard professor Michael porter,2 who believes in micro-economic analysis of the segments where competition occurs and who states bluntly that ‘Corporations don’t compete, business units do.’
In the blue corner, however, sits the resource-based view of strategy, which stresses the uniqueness of each corporation (not business unit) and claims that the success of firms is determined by the strength ...
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