Strategic Choices Framework
Formulating strategy in emerging industries
The Strategic Choices Framework describes how to formulate strategy in emerging industries. The framework highlights the importance of shaping industry structure, balancing industry advocacy and self-interest, and making strategic choices under uncertainty.
- Strategic flexibility is critical in emerging industries.
- Firms should shape industry structure to their advantage.
- The balance between industry advocacy and self-interest is a key strategic choice.
- Assess Industry StructureAssess the current industry structure and identify opportunities to shape it to your advantage.Pro tipShaping industry structure can provide a sustainable competitive advantage.WarningIgnoring industry structure can lead to ineffective strategic choices.
- Balance Industry Advocacy and Self-InterestBalance the need to advocate for the industry with the need to pursue self-interest.Pro tipThe balance between industry advocacy and self-interest is a key strategic choice.WarningIgnoring the need for industry advocacy can lead to ineffective strategic choices.
Hospital Management Industry
Firms in the hospital management industry have balanced industry advocacy and self-interest, demonstrating effective strategic choices.
OutcomeThe industry has experienced significant growth and profitability.
Ignoring Industry Structure
Ignoring industry structure can lead to ineffective strategic choices.
Inadequate Balance
Ignoring the need for industry advocacy can lead to ineffective strategic choices.
The framework is based on the concept of strategic flexibility, which refers to the ability of firms to adapt to changing industry conditions. The framework provides a structured approach to formulating strategy in emerging industries.
Source · BOOK
Competitive Strategy