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Designing organizations to compete.
The Journal of Business Strategy
|January 5, 1985
Summary
Corporate success in defending or gaining market share hinges on organizational structures. The key is not perfection, but designing superior structures compared to competitors to gain a competitive edge.
Area of Science:
- Business Strategy
- Organizational Design
- Competitive Analysis
Background:
- Corporate competitive advantage is influenced by internal strengths and weaknesses.
- Organizational structure is a significant determinant of a company's ability to compete.
Purpose of the Study:
- To explore the relationship between corporate structure and market share dynamics.
- To identify strategic advantages derived from organizational design.
Main Methods:
- Analysis of corporate structures and their impact on market performance.
- Comparative study of organizational designs in competitive environments.
Main Results:
- Variations in market share defense and acquisition are linked to corporate structural attributes.
- Organizational weaknesses and strengths significantly impact competitive positioning.
Conclusions:
- Effective organizational structures are crucial for market share success.
- The strategic imperative lies in developing structures that outperform competitors, rather than seeking unattainable perfection.