Functional integration: an alternative pre-emptive strategy

Article Abstract:

Reducing the competitive pressures of the marketplace can assure profit, leading firms to attempt to reduce the effects of competition by preempting the actions and choices of competing firms. Traditional economic theory sees the taking of risks as necessary to competitive efficiency. Aggressive firms seeking strategic advantage exploit competitors' weaknesses and change the industrial infrastructure though pre-emptive conduct. However, pre-emption does not account for all dominant firms. Research indicates that some firms adopt policies of pre-emptive integration as an alternative to an aggressive pre-emption strategy. Under a strategy of pre-emptive integration, a dominant firm co-opts its rivals as affiliates and manages its affiliated rivals as if they were divisions. However, the dominant firm does not incur the obligations or costs of ownership.

Analysis

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Technology strategies in small firms

Article Abstract:

The role of technology strategy in innovative small and medium-sized companies in the high technology sector were examined. Technology management issues associated with larger firms were found to be of importance to smaller firms as well. A major feature of the strategies used by smaller firms were related to the need to enhance their comparative advantages over larger firms in such areas as organizational flexibility and speed of response. Another key feature was the emphasis on learning as a strategic tool to cope with rapidly changing market conditions.

Manufacturing industries, not elsewhere classified, Management, High technology industry

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