The paper "Business Strategy and Adaptability " is an outstanding example of a management assignment. The authors have pointed out some of the essential elements of the business environment that were traditionally used to analyze the industry in the past. They argue that the use of such elements to characterize the industry is outdated due to the dynamic nature of the market. According to the authors, the traditional industrial analysis approach assumes that the business environment is stable with no unpredictable elements. However, the cases presented by the authors depict a constantly changing market where the strategies for market positioning do not apply anymore.
For example, the fall of the top-ranked companies has increased tremendously from 2% to 14% from 1960 to 2008. It is also evident that the traditional approaches have not taken into account the unpredictability of the business brought about by technological changes. The emergence of technology has created a constantly evolving market. New technologies are introduced on a daily basis which requires the manager to review and adjust their plans. Moreover, globalization has created broad and unending industry structures which make it impossible to measure position.
However, the traditional approaches rely on strategy review which does not adhere to frequent changes in the industry. Furthermore, the conventional methods have proven insufficient as they depend on a bordered industry with well-defined business structures. In contrast, the contemporary business environment is open with dynamic components. Porters 5 Forces model was built on particular assumptions about building competitive advantage through building scale or focusing on a niche for example. Do the authors say there is a potential problem with that, and if so what is it? As articulated by the authors, the aim of any strategy is to establish a competitive advantage by leveraging on smart market positioning or by putting together the right competencies and capabilities for production and supply.
According to them, market positioning relies on determining an attractive niche or a dominant scale. Therefore, based on the industry analysis, businesses perform periodic strategy review. Moreover, companies use industry analysis to forecast the market trend and adjust their organizational structures accordingly.
List of References
PORTER, ME (1996), 'What is strategy?' Harvard Business Review, vol. 74, no. 6, pp. 61-78.[ 10 Must Reads on Strategy-Reading 1].
JOHNSON, MW, CHRISTENSEN, CM & KAGERMANN, H (2008), 'Reinventing your business model', Harvard Business Review, vol. 86, no. 12, pp. 50-9. [10 Must Reads on Strategy-Reading 4].
KAPLAN, R & NORTON, D (2000), 'Having trouble with your strategy? Then map it', Harvard Business Review, vol. 78, no. 5, pp. 167-76.
REEVES, M & DEIMLER, M (2011), 'Adaptability: the new competitive advantage', Harvard Business Review, vol. 89, no. 7/8, pp. 135-41.