Publications
Publications
- May 1993 (Revised December 1994)
- HBS Case Collection
Geography of Competition and Strategy, The
Abstract
Addresses the role of geographic scope in competition and strategy. Makes distinctions between the geographic scope of competition (or the effective area over which firms compete), the geographic scope of competitive advantage (or the geographic area from which a firm can draw locational advantages), and the geographic scope of strategy (the area over which a firm chooses to compete and locate its activities). The geographic scope of competition is influenced by technology, tastes, governments, and company strategy. Locational advantages are the result of favorable factor conditions, demand conditions, related and supporting industries, firm strategy, structure, and rivalry. The firm may choose to compete in a single market (a geographically focused strategy), in all markets (a global strategy), or some combination of markets. The firm can choose the configuration (location) and coordination of its activities. The firm adds value to geographically dispersed units through the choice of markets to serve, the location and coordination of activities, and the active management of economies of scale, scope, and learning.
Keywords
Citation
Enright, Michael J. "Geography of Competition and Strategy, The." Harvard Business School Background Note 793-135, May 1993. (Revised December 1994.)