Contents
PART I  General Analytical Techniques
CHAPTER 1 THE STRUCTURAL ANALYSIS OF INDUSTRIES     3
          StructuraI Determinants of the
          Intensity of Competition                  5
          StructuraI Analysis and
          Competitive Strategy                      29
          StructuraI Analysis and
          I ndustry Defi nition                     32
CHAPTER 2  GENERIC COMPETITIVE STRATEGIES           34
           Three Generic Strategies                 35
           Stuck in the Middle                      41
           Risks of the Generic Strategies          44
CHAPTER 3  A FRAMEWORK FOR COMPETITOR ANALYSIS      47
           The Components of Competitor
                  Analysis                          49
           Putting the Four Components
           Together--The Competitor
             Response Profile                       67
           Competitor Analysis and
           Industry Forecasting                     71
           The Need for a Competitor
           InteIligence System                      71
CHAPTER 4  MARKET SIGNALS                           75
           Types of Market Signals                  76
           The Use of History in
            Identifying Signals                     86
           Can Attention to Market Signals
               Be a Distraction?                    87
CHAPTER 5  COMPETITIVE MOVES                        88
           Industry lnstaIity:The LikelIhood
               of Competitive Warfare               89
           Competitive Moves                        91
           Commitment                              100
           FocaI Points                            105
           A Note on Information and Secrecy       106
CHAPTER 6  STRATEGY TOWARD BUYERS AND SUPPLIERS    108
           Buyer Selection                         108
           Purchasing Strategy                     122
CHAPTER 7  STRUCTURAL ANALYSIS WITHIN INDUSTRIES   126
           Dimensions of Competitive Strategy      127
           Strategic Groups                        129
           Strategic Groups and a Firm’s
           Profitability                           142
           Implications for Formulation
                of Strategy                        149
           The Strategic Group Map as an
               Analytical TooI                     152
CHAPTER 8    INDUSTRY EVOLUTION
             Basic Concepts in Industry Evolution  157
             Evolutionary Processes                163
             Key Relationships in Industry
                     Evolution                     184
PART II Generic Industry Environments
CHAPTER 9  COMPETITIVE STRATEGY IN FRAGMENTED
                    INDUSTRIES                     191
           What Makes an Industry
                 Fragmented?                       196
           Overcoming Fragmentation                200
           Coping with Fragmentation               206
           Potential Strateg ic Traps              210
           Formu lati ng Strategy                  213
CHAPTER 10 COMPETITIVE STRATEGY IN EMERGING
                 INDUSTRIES                        2l5
           The StructuraI Environment              216
           Problems Constraining Industry
                  Development                      221
           Early and Late M arkets                 225
           Strateg ic Choices                      229
           Techniques for Forecasting              234
           Which Emerging l ndustries to Enter     235
CHAPTER 11 THE TRANSITION TO INDUSTRY MATURITY     237
           Industry Change during Transition       238
           Some Strategic Implications of
                      Transition                   241
           Strategic PitfallS in Transition        247
           OrganizatiOnaI Implications of
                     Maturity                      249
           Industry Transition and the General
                     Manager                       252
CHAPTER 12 COMPETITIVE STRATEGY IN DECLINING
                     INDUSTRIES                    254
           Structural Determinants of
              Competition in Decline               255
           Strategic AIternatives in Decline       267
           Choosing a Strategy for DecliRe         271
           Pitfalls in Decline                     273
           Preparing for Decline                   274
CHAPTER l3 COMPETITION IN GLOBAL INDUSTRIES        275
           Sources and Impediments to Global
                    Competition                    277
           Evolution to GlobaI|ndustries           287
           Competition in GlobaIIndustries         291
           Strategic AIternatives in GIobaI
               Industries                          294
           Trends Affecting Global
              Competition                          295
PART III Strategic Decisions
CHAPTER 14 THE STRATEGIC ANALYSIS OF VERTICAL
                  INTEGRATION                      300
            Strategic Benefits and Costs of
                  Vertical Integration            302
            Particular Strategic Issues in
                Forward Integration               315
            Particular Strategic Issues in
                Backward Integration              317
            Long-Term Contracts and the
              Economics of Information            318
            Illusions in VerticaIIntegration
                  Decisions                       322
CHAPTER 15  CAPACITY EXPANSION                    324
            Elements of the Capacity Expansion
                     Decision                     325
            Causes of Overbuilding Capacity       328
            Preemptive Strategies                 335
CHAPTER 16  ENTRY INTO NEW BUSINESSES             339
            Entry through Internal Development    340
            Entry through Acquisition             350
            Sequenced Entry                       356
APPENDIX A  PORTFOLIO TECHNIQUES IN
              COMPETITOR ANALYSIS                 361
APPENDIX B  How TO CONDUCT AN INDUSTRY ANALYSIS   368
            Bibliography                          383
            Index                                 389
            About the Author                      397