Industry-Based View of Strategy

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Industry Attributes: Business vs. Corporate Model

The strengths and weaknesses of the statement that the firm performance is fundamentally determined by industry-specific attributes in light of the business-level model of global competitive dynamics

When an organization follows the business-level model it usually focuses on the development of the company in the context of a single market with paying much attention to the positions of the competitors.

Thus, the peculiarities of using the business-level model depend on creating the conditions of the rivalry between the competitors in the industry (Peng). That is why to get the leading positions in the market, it is necessary for the company to focus on determining the advantages of its product in order to accentuate them while presenting the product or service to the customer.

The orientation on the customer and his needs is one of the most significant peculiarities of this strategy. The success within customers emphasizes the higher positions within the industry.

The quite narrow perspective for the competition and realizing the companys potential requires focusing on the details of the industrys development and on the products features (Hitt, Ireland and Hoskisson). According to this point of view, industry-specific attributes plays the decisive role in determining the strategy for the companys progress and the effective competition within the industry.

The phenomenon of global competitive dynamics accentuates the necessity of concentration on providing the difference between the company and its competitors positions within the industry market which will help to reveal the advantages of the product or service (Hitt, Ireland and Hoskisson). Thus, the business-level model is oriented on the strengths of the industry-based view of strategy.

The strengths and weaknesses of the statement that the firm performance is fundamentally determined by industry-specific attributes in light of the corporate-level model of multinational strategy

The corporate-level model provided by companies is oriented on the development of the multimarket activities (Peng). Thus, the strategic scope determined for the company with the help of this strategy is wider in comparison with the business-level model and involves different markets and different geographical regions where it is possible to present the product or service.

Thus, the main concept provided by the strategy is the principle of market diversification (Hitt, Ireland and Hoskisson). Following this model, the company pays attention not only to the strategic activities within the market but also to the economic and industrial environment.

That is why it is also necessary to focus on the industry-specific attributes, but they are not so influential at the global economic level as in the situation with the business-level model (Peng). Therefore, this statement has definite weaknesses in relation to the corporate-level model.

The potential contributions of the industry-based view to the formulation and implementation of a firms own global strategy

To develop and implement the effective strategy for the definite company, it is necessary to concentrate on the industry-specific attributes while following the business-level model as well as using the corporate-level model. In the first case, the industry-based view is necessary for providing the successful competition within the industry and its market.

In the case of the corporate-level model, the industry-based view is significant for determining the advantages of the company and its products and services in the context of the industry market with references to the possibilities of realizing the companys effective multimarket activities in the future (Hitt, Ireland and Hoskisson).

The firm performance within a definite industry is meaningless without paying attention to the industry-based attributes which influence the peculiarities of the industrys development. That is why the industry-based view can be considered as effective for contributing to the companys forming the global strategy and to its progress.

Works Cited

Hitt, Michael, Duane Ireland and Robert Hoskisson. Strategic Management: Competitiveness and Globalization, Concepts. USA: Cengage Learning, 2010. Print.

Peng, Mike W. Global Strategy. USA: South-Western College Pub, 2008. Print.

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