Porter's (1980) generic strategies, performance and risk

Autori

• Jan Eldring

Parametri

• 82 pagine
• 3 ore di lettura

• Economia e affari

Maggiori informazioni sul libro

Porter’s influential work on competitive strategy emphasizes the quest for a favorable competitive position within an industry, which can fluctuate based on a firm's strategic choices. He introduced a typology of three generic strategies: cost leadership, differentiation, and focus, which has become foundational in strategic management. Recently, Michael Raynor challenged this framework by introducing the dimension of risk, arguing that firms employing pure strategies face greater corporate risk compared to those with hybrid strategies. His perspective is supported by two main points: first, existing studies often exhibit "survivor bias," overlooking firms that failed while following a pure strategy; second, hybrid strategy firms demonstrate greater flexibility in adapting to market changes, thus reducing strategic uncertainty. Raynor's research enriches the strategic management literature by evaluating strategic choices across profitability and risk dimensions. His study tests Porter’s typology using German data and examines whether successful firms with pure strategies are at a higher risk of bankruptcy. The initial section reviews relevant literature, detailing generic strategies and summarizing key studies. It introduces the "Strategy Paradox," addressing the relationship between risk and return. Two hypotheses are proposed and tested using data from the Centre of European Economic Research. Subsequent sections analyze res

Lingua: Inglese

Pubblicato: 2009

(In brossura)