Contemporarystrategic analysis 8ed Robert M. Grant 750 pages Preface to Eighth Edition ix
Part 1: INTRODUCTION 1
1 The Concept of Strategy 3
1.1 The Role of Strategy in Success 3
1.2 The Basic Framework for Strategy Analysis 8
1.3 A Brief History of Business Strategy 10
1.4 Strategy Today 13
1.5 How Is Strategy Made? The Strategy Process 19
1.6 Strategic Management of Not-For-Profit Organizations 21
Part 2: THE TOOLS OF STRATEGY
ANALYSIS 29
2 Goals, Values, and Performance 31
2.1 Strategy as a Quest for Value 32
2.2 Putting Performance Analysis into Practice 37
2.3 Beyond Profit: Values and Corporate Social Responsibility 45
2.4 Beyond Profit: Strategy and Real Options 48
3 Industry Analysis: The Fundamentals 55
3.1 From Environmental Analysis to Industry Analysis 56
3.2 Analyzing Industry Attractiveness 57
3.3 Applying Industry Analysis to Forecasting Industry Profitability 67
3.4 Using Industry Analysis to Develop Strategy 69
3.5 Defining Industries: Where to Draw the Boundaries 70
3.6 From Industry Attractiveness to Competitive Advantage: Identifying Key
Success Factors 72
4 Further Topics in Industry and Competitive Analysis 81
4.1 Extending the Five Forces Framework 81
4.2 Dynamic Competition: Hypercompetition, Game Theory, and Competitor Analysis 84
4.3 Segmentation and Strategic Groups 92
5 Analyzing Resources and Capabilities 103
5.1 The Role of Resources and Capabilities in Strategy Formulation 103
5.2 Identifying Resources and Capabilities 107
5.3 Appraising Resources and Capabilities 116
5.4 Developing Strategy Implications 120
6 Organization Structure and Management Systems: The
Fundamentals of Strategy Implementation 129
6.1 From Strategy to Execution 130
6.2 Organizational Design: The Fundamentals of Organizing 134
6.3 Organizational Design: Choosing the Right Structure 142
Part 3: BUSINESS STRATEGY AND THE QUEST FOR
COMPETITIVE ADVANTAGE 153
7 The Sources and Dimensions of Competitive Advantage 155
7.1 How Competitive Advantage Emerges and Is Sustained 156
7.2 Types of Competitive Advantage: Cost and Differentiation 163
7.3 Cost Analysis 163
7.4 Differentiation Analysis 172
7.5 Implementing Cost and Differentiation Strategies 183
8 Industry Evolution and Strategic Change 189
8.1 The Industry Life Cycle 190
8.2 Managing Organizational Adaptation and Strategic Change 197
8.3 Managing Strategic Change 204
9 Technology-based Industries and the Management of Innovation 223
9.1 Competitive Advantage in Technology-intensive Industries 224
9.2 Which Mechanisms Are Effective at Protecting Innovation? 229
9.3 Strategies to Exploit Innovation: How and When to Enter 229
9.4 Competing for Standards 235
9.5 Implementing Technology Strategies: Creating the Conditions for Innovation 240
10 Competitive Advantage in Mature Industries 253
10.1 Competitive Advantage in Mature Industries 253
10.2 Strategy Implementation in Mature Industries: Structure, Systems, and Style 258
10.3 Strategies for Declining Industries 261
Part 4: CORPORATE STRATEGY 267
11 Vertical Integration and the Scope of the Firm 269
11.1 Transaction Costs and the Scope of the Firm 270
11.2 The Benefits and Costs of Vertical Integration 272
11.3 Designing Vertical Relationships 280
12 Global Strategy and the Multinational Corporation 287
12.1 Implications of International Competition for Industry Analysis 288
12.2 Analyzing Competitive Advantage in an International Context 290
12.3 Applying the Framework: International Location of Production 293
12.4 Applying the Framework: Foreign Entry Strategies 297
12.5 Multinational Strategies: Global Integration versus National Differentiation 298
12.6 Strategy and Organization within the Multinational Corporation 304
13 Diversification Strategy 313
13.1 Trends in Diversification over Time 314
13.2 Motives for Diversification 316
13.3 Competitive Advantage from Diversification 319
13.4 Diversification and Performance 323
13.5 The Meaning of Relatedness in Diversification 324
14 Implementing Corporate Strategy: Managing the Multibusiness Firm 331
14.1 The Role of Corporate Management 332
14.2 Managing the Corporate Portfolio 332
14.3 Managing Individual Businesses 334
14.4 Managing Linkages across Businesses 340
14.5 Managing Change in the Multibusiness Corporation 343
14.6 Governance of Multibusiness Corporations 348
15 External Growth Strategies: Mergers, Acquisitions, and Alliances 359
15.1 Mergers and Acquisitions: Causes and Consequences 359
15.2 Strategic Alliances 365
16 Current Trends in Strategic Management 373
16.1 The New Environment of Business 373
16.2 New Directions in Strategic Thinking 377
16.3 Redesigning Organizations 381
16.4 The Changing Role of Managers 384
Part 5: Cases to accompany
Contemporary Strategy Analysis 389
Appendix 17Case 1: Madonna: Sustaining Success in a Fast-moving Business 391
17.1 Beginnings 391
17.2 Madonna on Top 392
17.3 Sex, Religion, and Self-Promotion 393
17.4 Creating and Projecting Image 393
17.5 Madonna as Mogul 394
Appendix 18Case 2: Starbucks Corporation, April 2012 397
18.1 The Starbucks Story 399
18.2 Starbucks’ Strategy 399
18.3 Reformulating the Strategy, 2008−2012 401
18.4 The Market for Coffee 404
18.5 Looking Ahead 406
Appendix 19Case 3: Valuing Facebook 415
19.1 Valuation Methodologies 415
19.2 What Will Determine Facebook’s Future Profits? 418
19.3 Facebook and the Social Networking Business 419
19.4 Facebook’s Advertising Pull 420
Appendix 20Case 4: The US Airline Industry in 2012 425
20.1 From Regulation to Competition 427
20.2 Firm Strategy and Industry Evolution 428
20.3 The Industry in 2012 433
20.4 Looking to the Future 438
Appendix 21Case 5: Ford and theWorld Automobile Industry in 2012 441
21.1 Development of the World Automobile Industry3 442
21.2 The Evolution of the Automobile 443
21.3 Changes in Manufacturing Technology 445
21.4 New Product Development 445
21.5 The World Auto Industry in 2012 446
21.6 Outsourcing and the Role of Suppliers 447
21.7 The Quest for Cost Reduction 447
21.8 Excess Capacity 450
21.9 Internationalization 450
21.10 Outlook for the Future 452
Appendix 22Case 6:Wal-Mart Stores Inc., June 2012 457
22.1 History of Wal-Mart 459
22.2 Wal-Mart in 2012 462
22.3 Wal-Mart Stores’ Operations and Activities 466
Appendix 23Case 7: Harley-Davidson, Inc., May 2012 473
23.1 The History of Harley-Davidson 474
23.2 The Heavyweight Motorcycle Market 475
23.3 Harley-Davidson in 2012 477
23.4 Competition 483
Appendix 24Case 8: Manchester United: Preparing for Life without Ferguson 491
24.1 The Competitive Environment 492
24.2 Football Finances 492
24.3 Teams and Team Building 498
24.4 Management and Organization 502
24.5 Manchester United: The Club and the Company 502
24.6 Looking to the Future 506
Appendix 25Case 9: AirAsia: TheWorld’s Lowest-cost Airline 511
25.1 The History of AirAsia 512
25.2 AirAsia’s Strategy and Culture 513
25.3 AirAsia’s Operations 514
25.4 AirAsia: Cost Information 515
25.5 Going Long-haul 515
25.6 The Outlook for Long-haul 517
Appendix 26Case 10: Eastman Kodak’s Quest for a Digital Future 521
26.1 Kodak’s History, 1901−1993 521
26.2 Committing to a Digital Future 522
26.3 Emphasis on Printed Images 528
26.4 Harvesting the Traditional Photography Business 530
26.5 Eastman Kodak in 2012 530
26.6 Competition 531
26.7 Kodak’s Resources and Capabilities 532
26.8 Reflections 536
Appendix 27Case 11: Raisio Group and the Benecol Launch [A] 539
27.1 History of Raisio 539
27.2 Raisio in 1997 541
Appendix 28Case 12: Video Game Console Industry in 2012: The Next Round 553
28.1 History of the Video Game Industry, 1972−2012 553
28.2 The Video Games Industry in 2012 556
28.3 Looking to the Future 560
28.4 Financial Data for the Leading Console Makers 560
Appendix 29Case 13: The DVDWar of 2005−2008: Blu-Ray vs. HD-DVD 563
29.1 The Technology 563
29.2 Battle Commences 564
29.3 Tipping Point 565
Appendix 30Case 14: New York Times: Seeking Salvation within a
Declining Industry 569
30.1 The New York Times Company in 2012 573
30.2 Cost Cutting 573
30.3 The US Newspaper Industry 575
30.4 In Search of Online Business Model 577
30.5 Looking to the Future 577
Appendix 31Case 15: Eni SpA: The Corporate Strategy of an
International Energy Major 579
31.1 The History of Eni 580
31.2 The Petroleum Sector in 2012 587
31.3 The Outlook for Eni in 2012 594
Appendix 32Case 16: American Apparel: Vertically Integrated in
Downtown LA 603
32.1 The T-Shirt Business 603
32.2 Dov Charney and the Development of American Apparel 604
32.3 American Apparel’s Strategy and Operations 606
32.4 Product Development and Design 607
32.5 Manufacturing 607
32.6 Retail and Wholesale Distribution 609
32.7 Employee Relations: A “Sweat-Shop” Free Environment 611
32.8 Marketing and Social Responsibility 612
32.9 Managing Turnaround, 2010−2012 612
32.10 Looking to the Future 613
Appendix 33Case 17: Outback Steakhouse: Going International 615
33.1 Outback’s Strategy 616
33.2 Preparing for International Expansion 618
33.3 Overseas Expansion by US Restaurant Chains 619
Appendix 34Case 18: Vodafone in 2012: Rethinking International Strategy 623
34.1 Vodafone’s International Expansion, 1984−2012 626
34.2 Sarin and the Quest for Integration 628
34.3 Vodafone’s International Strategy under Colao, 2008−2011 630
34.4 The Future of Vodafone 632
34.5 Vodafone’s Strategic Positioning in Relation to Industry Evolution 635
Appendix 35Case 19: The Virgin Group in 2012 639
35.1 Development of the Virgin Group, 1968−2012 640
35.2 The Virgin Group of Companies in 2012 642
35.3 Richard Branson and the Virgin Business Development Model 644
35.4 The Virgin Group’s Management Structure and Style 645
35.5 Virgin’s Financial Performance 647
35.6 Looking to the Future 648
Appendix 36Case 20: Google Inc.: What’s the Corporate Strategy? 655
36.1 June 2012 655
36.2 The History of Google, 1996−2012 656
36.3 Google’s Management and Capabilities 662
36.4 Future Challenges 663
Appendix 37Case 21: Danone: Strategy Implementation in an
International Food and Beverage Company 673
37.1 Danone’s Development, 1973−2011 673
37.2 Danone in 2012 674
37.3 Organizational Structure 677
37.4 Management Systems and Style 678
37.5 Knowledge Management 679
37.6 Principles and Values 680
37.7 Emerging Market Strategy 681
37.8 Future Challenges 682
Appendix 38Case 22: Jeff Immelt and the Reinventing of General Electric 693
38.1 A History of GE 695
38.2 Jeff Immelt 697
38.3 GE’s Business Environment, 2001−2012 697
38.4 GE’s Growth Strategy 698
38.5 Changing the GE Management Model 703
Appendix 39Case 23: Bank of America’s Acquisition of Merrill Lynch 713
39.1 December 2008 713
39.2 The Strategic Issues Arising from the Merger 716
Appendix 40Case 24:W. L. Gore & Associates: Rethinking Management? 729
40.1 The Founding of Gore 729
40.2 Origins of the Gore Management Philosophy 729
40.3 Organization Structure and Management Principles 731
40.4 Innovation 733
Glossary 737