Strategic Management: Concepts

Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow

3 ideas

1. The AFI strategy framework

   Rothaermel organizes strategy as Analysis of the environment, Formulation of business and corporate strategy, and Implementation. The loop structures the entire textbook.

2. External and internal analysis integrated

   Advantage comes from matching industry structure (five forces, PESTEL) to firm resources and capabilities (RBV, VRIO). Neither positioning nor resources alone suffices.

3. Advantage must be sustained

   Above-average performance requires advantages competitors cannot easily imitate or substitute. Strategy's aim is durability, not one-time gains.

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