Handbook of Research on Competitive Strategy
Show Less

Handbook of Research on Competitive Strategy

Edited by Giovanni Battista Dagnino

The Handbook of Research on Competitive Strategy presents a comprehensive state-of-the-art picture of current strategic management issues and demarcates the major investigation strands that are likely to shape the field into the future.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 2: What is Competitive Strategy? Origins and Developments of a Relevant Research Area in Strategic Management

Vincenzo Pisano and Michael A. Hitt


Vincenzo Pisano and Michael A. Hitt INTRODUCTION Strategy matters because it provides precise directions to a firm. A competitive strategy is a set of decisions necessary to support organizational goals within a specific business. By implementing a certain competitive strategy, a firm defines its position relative to its rivals, which in turn contributes to a competitive advantage. The necessity to embark upon a work on competitive strategy is justified by the huge evolution that has characterized firms’ competitive environments since Michael Porter elaborated one of the first and most well-known business strategies’ classifications.1 Today’s industries may be viewed as complex adaptive systems that evolve through several life stages (birth, growth, maturity and death). The rate of change from one stage to the next can be slowed or amplified because of the impact of a series of factors influencing each industry’s life cycle, such as technological change, environmental uncertainty, competitive dynamics, changes in consumer preferences and so on. These factors – which we examine later in this chapter – need to be analyzed by each firm in order to organize and establish the most effective competitive behavior to adopt in their industry. Having knowledge of these factors is required for all firms because their impact can reshape the nature of the industry (i.e. the industry structure) very rapidly in today’s environment. These changes (sometimes sudden and unpredictable, sometimes slower but incontrovertible) may force firms to readapt their strategies, for instance adopting a different technology or trying to create new sources of competitive advantage....

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.