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1 – 10 of over 115000Javier Gimeno, Ming-Jer Chen and Jonghoon Bae
We investigate the dynamics of competitive repositioning of firms in the deregulated U.S. airline industry (1979–1995) in terms of a firm's target market, strategic posture, and…
Abstract
We investigate the dynamics of competitive repositioning of firms in the deregulated U.S. airline industry (1979–1995) in terms of a firm's target market, strategic posture, and resource endowment relative to other firms in the industry. We suggest that, despite strong inertia in competitive positions, the direction of repositioning responds to external and internal alignment considerations. For external alignment, we examined how firms changed their competitive positioning to mimic the positions of similar, successful firms, and to differentiate themselves when experiencing intense rivalry. For internal alignment, we examined how firms changed their position in each dimension to align with the other dimensions of positioning. This internal alignment led to convergent positioning moves for firms with similar resource endowments and strategic postures, and divergent moves for firms with similar target markets and strategic postures. The evidence suggests that repositioning moves in terms of target markets and resource endowments are more sensitive to external and internal alignment considerations, but that changes in strategic posture are subject to very high inertia and do not appear to respond well to alignment considerations.
Salah S. Hassan and Stephen H. Craft
The purpose of this paper is to examine empirically the relationship between positioning strategies and bases of segmentation in international markets.
Abstract
Purpose
The purpose of this paper is to examine empirically the relationship between positioning strategies and bases of segmentation in international markets.
Design/methodology/approach
A principal component analysis was conducted to determine the major macro‐ as well as micro‐bases of segmentation that are linked with strategic positioning decision options. Further, a regression analysis was used to examine the effect of each of the segmentation bases on the different strategic positioning options used by segmentation managers.
Findings
This study suggests the combined use of both macro‐ and micro‐bases of segmentation in order to leverage similar strategic positioning across global markets. However, micro‐bases of segmentation are suggested for firms seeking differential positioning strategies.
Research limitations/implications
The conceptual and empirical findings of this study pave the way for embarking on promising and relevant future research that is needed to substantiate and enrich the academic understanding and managerial practice of linking global segmentation with strategic positioning decisions. Future research should focus on the use of hybrid segmentation strategies; its logical design; implementation issues; and its evaluation mechanism.
Practical implications
This study provides specific empirical evidence of the relationship between strategic use of segmentation bases and strategic positioning. An effective use of the proposed framework will have various strategic marketing implications for firms; including cost efficiencies, opportunities to transfer products globally, expansion opportunities of current operation, and development of more effective brand management decisions.
Originality/value
The proposed global strategic segmentation and positioning matrix is a new tool that guides managers to position their brands effectively in world markets.
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Robert E. Morgan, Carolyn A. Strong and Tony McGuinness
Adopts a firm‐level approach and attempts to develop our understanding of the means through which different types of firm compete. Addresses specifically, a lacuna in existing…
Abstract
Adopts a firm‐level approach and attempts to develop our understanding of the means through which different types of firm compete. Addresses specifically, a lacuna in existing knowledge by investigating a fundamental research question: “How do firms pursuing a prospector mode of market strategy differ from those pursuing a defender, analyzer or reactor strategy in terms of the product‐market positioning attributes they exhibit?“ Miles and Snow provide the basis for the assessment of strategy types, while “strategic market positioning” is characterised as the product‐market positions established by the firm. Conceptualises strategic market positioning as the ways in which firm‐specific resources and assets are deployed to build positional advantages in product‐markets. Presents analyses of data generated from high technology, medium and large, industrial manufacturing firms and discusses these results in the light of previous findings. Places particular emphasis on the distinguishing characteristics of prospector‐type firms. Identifies a number of potential research avenues from this study and discusses several implications for executives.
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Strategic group has been intensively studied since this term emerged in 1970s, but previous studies have been limited to the comparisons between groups such as performance…
Abstract
Purpose
Strategic group has been intensively studied since this term emerged in 1970s, but previous studies have been limited to the comparisons between groups such as performance comparison. The purpose of this paper is to explore the internal structure of strategic groups by examining the effect of strategic distance from a firm to the center of its strategic group on firm performance.
Design/methodology/approach
The research is based on data acquired from the annual reports of listed companies and some Chinese domestic databases, including CSMAR Solution, WIND financial database, and China Core Newspapers Full-text Database. After grouping listed pharmaceutical companies in China over the period 2010-2011, the authors test three hypotheses by using fixed effect regressions.
Findings
The paper finds that the strategic distance from a firm to the center of its strategic group has a significant negative effect on the firm's financial performance. Two factors are discovered to influence that effect: corporate diversification strengthens the negative effect of strategic distance on performance, while firm's media visibility weakens that negative effect.
Originality/value
The findings reveal the relationship between intra-group strategic positioning and firm performance, and specify how firms can gain competitive advantage through positioning choices and strategic actions. This study promotes the establishment of a more comprehensive strategic group theory by revealing the structure within strategic groups.
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Shervin Zakeri, Yingjie Yang and Melika Hashemi
The purpose of this paper is to implement the strategies selection process in a proposed formulated mathematical framework to prioritize selected strategies with the interaction…
Abstract
Purpose
The purpose of this paper is to implement the strategies selection process in a proposed formulated mathematical framework to prioritize selected strategies with the interaction of other groups of strategies, known as the strategies interaction model (SIM).
Design/methodology/approach
SWOT analysis is a popular useful strategic planning tool, which analyzes organizations internal and external factors. The traditional SWOT procedure lists internal and external factors and derives four groups of strategies based on the organization’s strategic position. SWOT is easy to use as a business analyzing tool, while it is not competent enough for strategic formulation. With the emergence of the economy’s vicissitudes, undulations in the markets and multiple changes, and various variables in the industrial competitive environment, selection of the organization strategies confront uncertainty in decision making. The SIM framework presents a solution to select alternative strategies for organizations in unpredictable situations.
Findings
The findings show that SIM is a reliable approach to evaluate, select and rank organization’ strategies. SIM proposes alternative strategies due to the uncertainty of the organization’ environment with respect to the four strategic positions. The SIM’ proposed ranking process is in accordance with the highest impact of each strategy on each other. Furthermore, it possesses advantages of AHP, ANP and other applied multiple criteria decision-making (MCDM) techniques in SWOT analysis.
Practical implications
In this paper SIM is applied within a dairy company located in the north of Iran.
Originality/value
SIM has the advantages of the classic SWOT and fills the gaps of MCDM methods application in the SWOT analysis. Moreover, it provides a formulated algorithm for the organizations to face the uncertainty of the environment. SIM philosophy can be widely used in the decision and managerial implications.
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Mark Lewis, Ryan Baxter and Richard Pouder
The purpose of this study is to examine the impact of strategic position on the ability of an entrepreneurial firm to successfully develop and deploy electronic personal health…
Abstract
Purpose
The purpose of this study is to examine the impact of strategic position on the ability of an entrepreneurial firm to successfully develop and deploy electronic personal health records technology within the US healthcare industry.
Design/methodology/approach
This study uses an in-depth longitudinal case study methodology.
Findings
The study contributes by juxtaposing a longitudinal view of how the focal firm proposed and acted on different strategic positions in an attempt to achieve development and deployment success. In doing so, the study also elaborates on Porter's recognition that firms need to make trade-offs when choosing a strategic position, as the purposeful limitation of service offerings can protect against the degradation of existing value creating activities.
Research limitations/implications
The authors' study highlights the enormous challenge of facilitating the adoption and diffusion of technology enabled interventions in the US healthcare ecosystem. Future research that combines both interdisciplinary and multi-level investigation and analysis is sorely needed to develop a more sophisticated understanding of the phenomenon and to encourage the development and deployment of useful technology enabled interventions within the US healthcare industry.
Practical implications
While the fragmented nature of the healthcare industry provides opportunities for entrepreneurial firms, such complexity within the ecosystem should not be underestimated as a reason for concern for small firms.
Social implications
Total economic burden due to chronic diseases and other healthcare-related expenses is massive for the USA. Consequently, prevention and early detection of future disease states has become a core component of the current healthcare reform debate. EPHRs are considered one core component of a broader healthcare strategy to improve health outcomes and lower costs. By deepening our understanding of how best to develop and deploy such interventions, society will surely benefit.
Originality/value
The longitudinal nature of the authors' study provides a unique opportunity to understand the dynamic interrelationships between context, position, and performance within the US healthcare industry.
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Justyna Światowiec-Szczepańska and Beata Stępień
The purpose of this study is to investigate the links between a company’s position in a corporate network with its financial performance and strategic risk in the context of the…
Abstract
Purpose
The purpose of this study is to investigate the links between a company’s position in a corporate network with its financial performance and strategic risk in the context of the largest Central European stock market.
Design/methodology/approach
This study integrates the theory of social network analysis (SNA) with corporate governance theory with a special focus on resource dependence theory. Using the framework of network social analysis, the authors use network measures of social capital and embeddedness.
Findings
The results of studying companies listed on the Polish stock exchange indicate that a company’s corporate network position has a significant negative impact on strategic risk while having no influence on its financial performance. The research also highlights the importance of a firm’s corporate governance model for both performance and strategic risk.
Research limitations/implications
The data collected, and SNA measures used made it possible to conduct a cross-sectional study. Compared to longitudinal studies, this type of study has a couple of disadvantages addressed in the paper. In the future, the dependencies observed in this study should be tested using longer-term data.
Originality/value
To the best of the author’s knowledge, this is the first paper integrating the corporate personal and capital networks to test risk and performance dependencies in the context of Poland’s corporate governance model. The findings and conclusions can also be applied to analyzing Central and Eastern Europe stock markets.
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Henry Yu Xie, Qian (Jane) Xie and Hongxin Zhao
Strategic positioning of foreign firms in a host market is vital for their success. By integrating the resource partitioning theory and the resource-based view, this study aims to…
Abstract
Purpose
Strategic positioning of foreign firms in a host market is vital for their success. By integrating the resource partitioning theory and the resource-based view, this study aims to investigate foreign firms’ strategic positioning (i.e. their choice of generalist or specialist positioning strategy) and its performance implications in the US market.
Design/methodology/approach
The final sample includes 212 foreign companies from 28 countries operating in the US market. Multiple data sources were used to collect data of these foreign companies’ subsidiaries in the USA This study used logistic regression to test its major hypotheses.
Findings
The results of this study suggest that a generalist positioning strategy is positively related to performance in a host market. It is also found that market concentration and local market knowledge moderate this strategic positioning – performance relationship.
Research limitations/implications
For a foreign firm that enters a host market, market concentration (an industry-level factor) in the host market and the firm’s local market knowledge (a firm-specific factor) play prominent roles in the strategic positioning – performance relationship.
Originality/value
This study offers a novel perspective of international business strategy by applying the lens of resource partitioning theory to study the relationships between multinational enterprises’ strategic positioning and performance. This study contributes to the strategy literature in that it examines the performance implications of firms’ strategic positioning (i.e. generalist or specialist positioning).
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No matter what the state of the economy, no company is immune from internal hard times—stagnation or declining performance. How can management pinpoint the right turnaround…
Abstract
No matter what the state of the economy, no company is immune from internal hard times—stagnation or declining performance. How can management pinpoint the right turnaround strategy when it is needed—and make it work?
Ana María García-Pérez, Vanessa Yanes-Estévez, Juan Ramón Oreja-Rodríguez and Enrique González-Dávila
– The purpose of this paper is to study the strategic process of small- and medium-sized enterprises (SMEs) including strategic reference points (SRP) (Fiegenbaum et al., 1996).
Abstract
Purpose
The purpose of this paper is to study the strategic process of small- and medium-sized enterprises (SMEs) including strategic reference points (SRP) (Fiegenbaum et al., 1996).
Design/methodology/approach
The paper identifies the strategic positioning of SMEs (Lavie and Fiegenbaum, 2000, 2003) according to the importance that their managers give to internal and external SRP. Their influence on strategic types (Miles and Snow, 1978) and performance are analysed. This study uses information, from 83 SMEs in the Canary Islands (Spain), collected with a questionnaire.
Findings
SMEs are primarily adaptive firms followed by narcissist ones: numerous SMEs focus their attention on internal SRPs. SMEs strategic positioning determines their strategic orientations to a much lesser extent than their characteristics (sector, size and age) do. The results show that product specialisation, the only difference between adaptive SMEs and narcissist and amorphous ones, is not evident in their performance.
Practical implications
Decision makers and institutions should reflect about the maturity of the strategic process and the adaptation dynamic of SMEs. The need for SMEs to focus on their external vision should be highlighted.
Originality/value
The study includes SRP in the strategic process of SMEs. It contributes to the literature by drawing a map of the strategic positioning of SMEs, based on their SRPs (Lavie and Fiegenbaum (2000, 2003) and by linking the strategic positioning of SMEs with their strategic types. It also has the value of applying the Rasch Rating Scale Model (Andrich, 1978, 1988).
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