Strategic Decisions

Part III draws on the analytical structure in Part I to examine each major type of strategic decision that occurs in an industry:

  • vertical integration (Chapter 14);
  • major capacity expansion (Chapter 15);
  • entry (Chapter 16).

Divestment, the other major type of strategic decision, is considered in detail in Chapter 12, which analyzes the problems of competing in declining industries.

Each chapter in Part III draws on the concepts in Part I that relate to the particular strategic decision under examination. Part ill also introduces additional economic theory and adminis-trative considerations of managing and motivating an organiza-tion that relate to each type of strategic decision.

Part III is designed not only to help the firm make these strategic decisions itself but also to give it insight into how its competitors, customers, suppliers, and potential entrants might resolve them. Thus it reinforces and deepens concepts pre-sented in Parts I and II.

Source: Porter Michael E. (1998), Competitive Strategy_ Techniques for Analyzing Industries and Competitors, Free Press; Illustrated edition.

Leave a Reply

Your email address will not be published. Required fields are marked *