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1 – 10 of over 20000Patrick McNamee, Dolores O’Reilly and Brendan McFerran
Often businesses fail, or fail to reach their true potential, for strategic rather than operational reasons. This type of failure may be caused because the key decision makers in…
Abstract
Often businesses fail, or fail to reach their true potential, for strategic rather than operational reasons. This type of failure may be caused because the key decision makers in such firms are not well informed about the strategic landscape in which their firm operates. A military analogy is used to show that successful military campaigns are often predicated upon having accurate maps. Similarly, competitive strategies followed by firms are likely to be more successful if key decision makers possess accurate strategic maps which display the location of their own and rival firms. In other words, those firms which have detailed knowledge of their strategic landscapes are likely to enjoy significant competitive advantage, while firms which are in ignorance of their strategic landscape are less likely to be able to navigate a route that will confer sustained competitive advantage. A firm’s strategic landscape is analysed in terms of: the firm’s true competitive position, the industry conditions under which the firm and its competitors operate and the core strategies that firms in the industry are following. This paper analyses an approach to strategic mapping developed by a major new independent strategic database called CAM (Competitive Analysis Model). This database has been built to aid small firms improve their results through generating accurate strategic maps. These maps enable client firms to assess their strategic locations and performances longitudinally, sectorally and cross‐sectionally. Finally, CAM clients appear to have outperformed similarly structured non‐CAM firms.
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In the field of strategic management, the majority of studies analyse competitive environments from an economic standpoint, based on the implicit notion that business environments…
Abstract
Purpose
In the field of strategic management, the majority of studies analyse competitive environments from an economic standpoint, based on the implicit notion that business environments are formal and objective. As such, the human element is assumed and the role that managers play in creating and changing competitive environments is neglected. However, given that people take business decisions and drive organisations, to ignore such an important dimension of the competitive landscape is a considerable limitation to developing more holistic understandings about competitive landscapes. This study examines how managers perceive competitive terrains and discusses the impact of managerial cognitions on decision‐making, competitive strategies and industry dynamics.
Design/methodology/approach
The research is cross‐sectional and based on primary research. It involves semi‐structured face‐to‐face interviews with the sample size near to the sampling frame of the research. The industry examined is the mainstream UK foreign package holidays industry and the investigation occurred between March and August 2003.
Findings
It was found that managers view industries and competitors subjectively and that the social construction of competitive environments as well as the process of competitive enactment both influence managerial perceptions of competition. Consequently, similarities about competitive challenges are formed. Subsequently, such perceptions affect strategic decisions on competitive strategies and resource allocation. As a result, these actions affect industry dynamics and contribute to the evolution of the industry. Originality/value The study investigates an industry that has not been previously examined in the context of either strategic groups or from a cognitive perspective. Consequently, it provides fresh findings in the field to enable greater generalisation of results since cognition represents only a minor portion of the body of literature in the wider area of strategic management.
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The purpose of this paper is to analyze the competitive position of Italian roasting firms in the international market, thus developing a multidimensional framework for measuring…
Abstract
Purpose
The purpose of this paper is to analyze the competitive position of Italian roasting firms in the international market, thus developing a multidimensional framework for measuring industry export competitiveness.
Design/methodology/approach
Considering that the objective is to evaluate the export competitiveness of Italian roasting firms, the author chooses “positive” and “ex-post” indicators, combined in a multidimensional and a multivariable framework. The two dimensions of competitiveness implemented are competitive performance and competitive potential; the author used four indices to evaluate the first dimension (export market share, net export share, net export index, revealed comparative advantage) and three indices for the second dimension (unit export price, relative quality index, relative export growth).
Findings
The evolution of the international context, with the emergence of new competitors and the spread of coffee consumption worldwide, creates new opportunities but also new challenges for Italian companies. In fact, both competitive performance and competitive potential have been worsening since the second half of the early twenty-first century because of the lack of innovation. A mix of external and internal factors explain this lack.
Practical implications
In order to recover their international competitiveness, firms should leverage on the combination of “traditional elements”–such as Made in Italy effect and the rich technical know-how, depending on their long tradition in the espresso coffee market niche–with “innovative elements,” depending on new marketing skills and competences; these new elements could be developed internally or, most fruitfully, acquired externally, through collaboration with other firms. In this way, Italian businesses could improve the relative quality perceptions of their offering.
Social implications
Coffee roasting industry in Italy is a significant component of the Italian economic system and it contributes to the development of the Made in Italy abroad. Therefore, an improvement of its export competitiveness could be beneficial to the whole domestic market.
Originality/value
This paper constitutes the first attempt to study the evolution of the coffee industry in regards to the international competitive landscape. This is quite surprising, considering that coffee is one of the main segments of the food and beverage industry; it is the second most important commodity exchanged worldwide after oil and the third most popular beverage after water, tea and carbonated beverages. Then, the analysis of export competitiveness is developed combing two main research streams: the industrial organization literature and the strategic management literature. Moreover, this paper offers a methodological framework useful to measure export competitiveness also in other industries and countries.
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Amy Risch Rodie and Charles L. Martin
Despite the rapid growth and lure of the service sector, entrepreneurs are well advised to consider the numerous competitive challenges encountered when owning and operating a…
Abstract
Despite the rapid growth and lure of the service sector, entrepreneurs are well advised to consider the numerous competitive challenges encountered when owning and operating a service business. The unique nature of services (i.e. intangibility, heterogeneity, perishability, simultaneity) serves as a backdrop to accentuate the competitive landscapes in the service sector. To frame the analysis and discussion of the competitive environment for service businesses, the article applies Porter’s conceptualization of the five sources of competition – rivalry among existing intra‐industry firms; new entrants; substitutes; suppliers; and buyers. Discusses implications and suggestions for service entrepreneurs throughout the article.
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This study aims to investigate the relationship between strategy intent (product-service innovation intention) and outcome (product-service innovation outcome), and the role that…
Abstract
Purpose
This study aims to investigate the relationship between strategy intent (product-service innovation intention) and outcome (product-service innovation outcome), and the role that external sources of innovation play in influencing this relationship.
Design/methodology/approach
Using data obtained from the community innovation survey, we apply a logit regression to a sample of 1,419 Portuguese firms. By examining the moderating effect of open innovation breadth, we assess how the relationship between differentiation intent and outcome is contingent upon the involvement of external stakeholders.
Findings
Our findings reveal that the relationship between differentiation intent and outcome is contingent upon the moderating effect of open innovation breadth. Our analysis suggests that the negative influence of different sources of innovation can be addressed by adopting a paradox lens.
Practical implications
This research provides valuable insights for managers. By simultaneously pursuing a differentiation strategy and engaging in collaboration with external sources, firms may compromise their ability to effectively differentiate their offer. Managers should consider the potential tensions arising from internal and external stakeholder relationships to optimize their innovation strategies.
Originality/value
This study contributes to the existing literature by shedding light on the role of external innovation sources in influencing the relationship between differentiation intent and outcome and the importance that information systems may have in this relationship. By exploring the moderating effect of open innovation breadth, we provide a nuanced understanding of how firms can navigate organizational tensions and leverage innovation for competitive advantage.
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From a pedagogical point, the case may fulfill following objectives: First, to understand Vodafone’s position in the current environment. Does the environment present the elements…
Abstract
Learning outcomes
From a pedagogical point, the case may fulfill following objectives: First, to understand Vodafone’s position in the current environment. Does the environment present the elements that are necessary for them to thrive (as analyzed using a PESTEL framework)? Second, to understand the resources needed to build competitive advantage in an emerging market context (as analyzed using the Porter five forces model); and third, to understand the competitive challenges of conducting business in a highly (and sometimes capriciously) regulated industry.
Case overview/synopsis
The Indian Telecommunication sector is one of the fastest growing industries in the world. There are nine telecom operators who are pioneering this growth; however, five private companies: Bharti, Idea, Reliance, Aircel and Vodafone make up 78.86 per cent of the market. These five companies have the opportunity to increase their market share by expanding the services provided to rural India; however, the Indian Tax Authorities have caused some hesitation. Aside from being known as heavy handed and unpredictable, the authorities have also demanded that Vodafone pay them billions in taxes. These court cases have challenged the way that other telecom operators look at investing. The arrival of Reliance Jio as a new player in the Indian wireless space with deep pockets has not helped the already fierce competitive landscape. Reliance Jio is forcing all wireless companies including Vodafone to reevaluate their India strategy.
Complexity academic level
This case could be used in both MBA and executive education programs.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 11: Strategy.
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Harold L. Sirkin, James W. Hemerling and Arindam K. Bhattacharya
The paper aims to herald a new phase of worldwide trade and economic development which the authors call “globality.” Increasingly, companies from every part of the world will be…
Abstract
Purpose
The paper aims to herald a new phase of worldwide trade and economic development which the authors call “globality.” Increasingly, companies from every part of the world will be competing – for customers, resources, talent and intellectual capital – with each other in every one of the world's markets.
Design/methodology/approach
The paper produces evidence that incumbent global leaders will increasingly be forced to defend turf they thought they had won and secured long ago; and their expansion into emerging markets will be challenged as never before.
Findings
The paper finds that the challenger companies have grown from local to global, but instead of squelching local differences, they encouraged them. They retained their bias toward a decentralized management style, which allows them to leverage each new viewpoint as a new source of expertise, market knowledge, and best practice. They have mastered synthesizing many points of view.
Practical implications
Challengers view the world as a collection of diverse regions, each requiring strong local leadership with autonomy to act knowledgably, quickly, and decisively. To compete, incumbents must recognize that the era of globality is here now; learn from challengers; and adapt.
Originality/value
The study found that the challengers companies are able to devolve control, without descending into chaos, a huge competitive advantage. And they are innovating new centers of executive influence and new governance structures that support multiple independent centers of activity, while still leveraging global scale.
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David Heppes and Adeline du Toit
While competitive intelligence (CI) is a relatively new business discipline, it is evolving in complexity and importance, to maintain pace with rapid business development. It is…
Abstract
Purpose
While competitive intelligence (CI) is a relatively new business discipline, it is evolving in complexity and importance, to maintain pace with rapid business development. It is the aim of this paper to establish the level of maturity of the CI function within a South African retail bank based on key characteristics for different levels of maturity.
Design/methodology/approach
The research for the paper is based on an extensive review of literature and application of the grounded theory research approach. Grounded theory is more interested in theory building than theory testing, which makes it eminently suitable for areas of research to which little attention had been paid and in which little exploration had taken place. For the empirical evidence, a survey was conducted among a pre‐selected group of respondents of a South African retail bank by means of a questionnaire and personal interviews.
Findings
The results of the survey indicated that the CI function was at a mid‐level of maturity, after the underlying elements of the CI functions had been surveyed. While there is significant opportunity for the function to develop to a world‐class level, such growth is limited by respondents' requirements. The CI function is used in support of various levels of decision makers for various levels of decision making. There appears to be a lack of, and great requirement for, the provision of analytical products. Respondents indicated that the CI function should move towards being a key component of company strategy.
Research limitations/implications
The research was built around the various elements of the CI function, namely the key information needs of CI users, CI deliverables and capabilities, analytical products, relationship with management, sources of information, level of staffing of the CI function as well as the period of time the CI function has been operational. Some of the key findings were that the CI function should assist senior management in developing and reviewing a set of Key Intelligence Needs (KINs); that the CI function should be appropriately resourced; that the CI function should develop and deliver information on trends and implications in respect of the KINs through application of resources and analytical skills; that the CI function should develop and deliver early warning signals.
Originality/value
No research has been done on the level of maturity of the CI function in South African companies. The paper provides recommendations on ways for the CI function at the retail bank to evolve from a mid‐level of maturity to a world‐class level.
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This paper develops an organizing framework for research on corporate political strategy. It reviews the literature and then identifies a number of open research questions and…
Abstract
This paper develops an organizing framework for research on corporate political strategy. It reviews the literature and then identifies a number of open research questions and streams for potential investigation. The paper closes by developing a theory to explain why, when, and how a firm will pursue multi-forum political action as part of its nonmarket and integrated strategy.