This article provides a framework for strategic adaptation to deregulation drawing on the lessons learned in the United States. A firm can adapt to deregulation by the mix of productmarket and domain management strategies that it chooses. The strategies open to a firm in turn depend upon its resource endowment and strategic predisposition. Since it is difficult to alter either of these at short notice, it is imperative that a firm that is faced with deregulation in its environment initiates these transformations in anticipation of change.
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