...Company's Strategy
Course: MBA 714M Economic Perspective and Analysis
Section 1 Objective:
Examples and models illustrating interactions between a company and its main competitive rival have typically been analyzed within a relatively narrowly defined scope of industry structure and transactions. In part this is done for instructive purposes and also to enable the development of manageable predictive schemes. Competitive models such as Porter's Five Competitive Forces1 and the Value Net2 are very relevant in today's economy but somewhat oversimplified to develop a robust company strategy. The scope of the defined industry structure, the potential participants and their interactions must be reassessed to adapt to changes within the macroeconomic and social structure of today's world. External forces such as globalization and information technology developments are two main factors driving the need to reassess industry structure on an ongoing basis to determine how to maintain a competitive advantage or simply to avoid being disrupted within your own markets. Further, a company's strategy, business model and offerings must be modified to respond to these industry changes or to enter new markets.
This paper attempts to survey different competitive assessment models and approaches to developing company strategy relevant to the last 25 years of economic change. Selected public knowledge examples from the silicones industry will be used to illustrate specific points. Limited connections of competitive forces to microeconomic principles that drive them are made. Aspects of leveraging core competencies as a competitive assessment model are only briefly mentioned in this paper since this topic is covered extensively as part of the Comparative Advantage. A suggestion for developing a predictive microeconomic model relevant to...
