Strategic and organizational requirements for competitive advantage

Formulating an effective business strategy for a firm is a complex task. How best to compete in an industry is one of the major determinants that influence managers' choices of business strategy. The life cycle stages of the industry and the rate of technological change are two drivers that have significant impact on industry evolution. We develop a typology of four types of industry environments: Fast Growth; Wild, Wild West; Steady Evolution; and Creative Destruction. Each of these generates a different set of strategic imperatives for managers. To operate effectively in each type of industry environment, managers may select among four business strategies: Concept Drivers, Pioneers, Consolidators, and Concept Learners. We present the various strengths and challenges posed by each strategy and how managers can overcome these.