Article Abstract:
Industrial competitive structure can be analyzed using strategic group analysis. This method of analysis classifies competitors into strategic groups or clusters to determine whether a proposed strategy is workable and probable. Strategic control is a vital part of strategic group analysis. The nature of strategic control is influenced strongly by the style of strategic relationships within diversified organizations. The selection of control systems for strategic implementation are based on factors such as portfolio diversity, disparity in time in the translation of financial results, risk, and the source of competitive advantage. It is vital that there is a proper match between the processes of control and the situational factors in the business environment. The nature and extent of control exerted will depend on these business circumstances.
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Article Abstract:
The strategy of vertical de-integration provides numerous advantages to companies seeking a competitive advantage. It allows market forces to determine the extent of vertical relationships and helps companies operate more efficiently by promoting specialization and economies of scale. This strategic approach allows companies to concentrate on areas where the highest return on investment can be achieved by encouraging the contracting out of non-critical activities. Furthermore it releases much-needed capital, reduces risks, and permits faster growth.
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Article Abstract:
Inter-firm collaborations are formed to reduce uncertainty in the industrial environment by increasing the predictability of the firms within the collaboration, instead of being formed to reduce the costs of entering new markets and developing new products.
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