An empirical analysis of strategy types

Abstract

c Summary Using the PIMS SPIYR data base, which pools cross-section and timeseries data, an empirical study to identlfy business strategy types was undertaken. Using a two-stage methodological approach combining principal component and cluster analysis on both a consumer products and an industrial products data base, two sets of strategy typologies filere identifed. Six strategy types were ident$edfor consumer products: ( 1 ) harvest, ( 2 ) builder, (3) cashout, ( 4 ) niche or specialization, ( 5 ) climber, and ( 6 ) continuity. For industrial products, four strategy types were identijied: ( I ) low commitment, (2)growth, (3) maintenance, and ( 4 ) niche or specialization. A discussion of the characteristics of each strategy type is offered.Several of the typologies developed by researchers also include strategies at the corporate level, i.e. diversification. We have screened the different strategy typologies and reported only those that relate directly to business level strategic behaviour.The marketing literature has also suggested typologies of marketing strategy behaviour, which were not reported here. Kotler (1965), for example, suggested nine possible market strategies, some of which have analogies in the typologies reported in the strategic management literature. Also, typologies which attempt to classify different patterns of organizational behaviour, i.e. Miles and Snow's (1978) typology of defender, reactor, analyser, and prospector, have been excluded. In general these typologies integrate the range of relationships between 'strategy, structure, and process' (Miles and Snow, 1978: 30) rather thanconcentrating on patterns of strategy, which is the focus of this study.

How Does Strategic Choice Affect Business Results? A Case Study of Mutual Guarantee Societies

“…Our aim is to add results to studies that have analyzed this problem and to test hypotheses that validate one alternative or another. On the side closest to Porter's work, we find Campbell-Hunt (2000), Dess and Davis (1984), Galbraith and Schendel (1983), Parker and Helms (1992), and White (1986), among others. These studies conclude, overall, that the halfway position leads to negative results.…”

“…One possible answer to this question is to consider the strategy to be a determinant of the results, as evidenced by the literature (Cavusgil and Zou, 1994;Schendel, 1987, 1988;Cooper, 1984;Galbraith and Schendel, 1983;Hambrick and Schecter, 1983;Linsu and Yooncheol, 1988;Parker and Helms, 1992) and more recently, Hyvönen, 2007;Jenning et al, 2003;Luo and Ho Park, 2001;O'Regan and Ghobadian, 2004;Parmell, et al, 2006. However, not all of these studies reveal a directly proportional relationship between the two variables, which makes this study more compelling.…”

Niche and performance: the moderating role of network embeddedness

“…Findings in previous research (Brush and Chaganti, 1999;Galbraith and Schendel, 1983;Lawless and Anderson, 1996) suggest that the niche-performance relationship is not always straightforward. For example, traditional strategy models of competitive positioning suggest that a firm can benefit by being in a niche (e.g., Harrigan, 1985;Morrison and Roth, 1992;Porter, 1980); yet our research shows that the niche-performance relationship is not always positive.…”

Relationship between Construction Firm Strategies and Innovation Outcomes

“…It differs considerably from most classifications found in the general management literature (see summary by Galbraith and Schendel 1983), which are focused on the bases for strategic positions, e.g. varieties, needs, access (Porter 1996), or on broader generic strategy choices, e.g.…”