Strategic Management Unpacked: Practical, Yet Theoretically Justified Advice to Make Better Strategic Decisions

Why do some companies thrive while others merely survive—or linger, then fail entirely? Why does Apple generate returns on invested capital exceeding 30 percent while some other smartphone manufacturers struggle to break even? Why did Netflix transform from a DVD rental service into a streaming giant while once-dominant Blockbuster collapsed into bankruptcy? Why does Southwest Airlines historically consistently outperform legacy carriers despite flying the same aircraft and serving the same airports? And why does its business model seem like it stopped working recently?

These aren’t random outcomes or matters of luck; at least not all of them. They reflect fundamental differences in strategy—the set of choices firms make about where to compete, how to compete, and how to build advantages that competitors may not find easy to imitate.

This book is about understanding strategy choices and their consequences. It’s about introducing the analytical tools to understand the root causes of performance variances, and—most importantly—about understanding what managers can actually do to improve their firms’ competitive positions. Strategy in the business world isn’t just about understanding the world; it’s about changing it. This sounds lofty, but if you think about it, it isn’t an exaggeration. In the words of the late, great professor Will Mitchell, the business organizations are the most powerful actors in the world (yes, even nation states cannot compare).