Summary: Theories Of Strategy

Read the summary and the most important questions on Theories of Strategy

• 1 Week 1 - key take aways

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• Chicago school industry organization

  A renaissance of price theory, with firms as seekers of production and distribution efficiencies. 
  The theory of the firm implicit in the Chicago tradition is that firms exist to enhance efficiency in production and distribution. The general focus of the Chicago school was on obtaining efficiency differentials in producing or selling current (rather than new, innovative) products. 

• 1.1 Pre-recorder PP's

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• Schools of thought in economics (Conner, 1991)

  Zie afbeelding

• Economies theories of the firm

  Zie afbeelding

• Porter’s books on competitive strategy

  1, Competitive strategy: Techniques for Analyzing Industries and Competitors (1980) - Five Forces
  
  
  2. Competitive Advantage: Creating and Sustaining Superior Performance (1985) - Value Chain
  
  
  3. The competitive advantage of nations -  Diamond

• Bain type IO - Porter's main contribution to Strategic management (3)

  -  Translating findings from Bain-type industrial organization economics (IO) into managerial frameworks
  
  -  He turned IO around.
  
  -  This is where his early work is about

• Bain type IO - Recognizing that market may not really function according to the theoretical ideal of perfect competition

  -  Bain-type IO = about understanding markets and how real firms behave
  
  -  Very often that behavior would deviate from the behavior of perfect competition

• Bain-type IO: Structure – Conduct – Performance

  -  The behavior of firms in industries
  -  Explaining persistence of profits
  -  The role of market power
  -  Anti-trust policy

• Chicago school idea on regulation

  in principle against too much regulation, and against too much government involvement in markets (another idea of anti-trust policy)

• Generic strategies (individual firm)

  - Cost leadership - Become the one cost leader
  
  - Differentiation - Or find ways to differentiate
  
  - Focus - Focus on smaller segment, and try to become a cost leader and differentiate at the same time

• Key concepts of Porter's. Posioning view of Competitive Strategy

  - Five forces (industry structure)
  - Strategic groups (intra-industry structure)
  - Generic Strategies (firm conduct)