Frank T. Rothaermel Georgia Institute of Technology

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STRATEGIC MANAGEMENT

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ISBN 978-1-260-57123-3 MHID 1-260-57123-8

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DEDICATION

To my eternal family for their love, support, and sacrifice: Kelleyn, Harris, Winston, Roman, Adelaide, Avery, and Ivy. —Frank T. Rothaermel

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CONTENTS IN BRIEF

PART ONE / ANALYSIS 2 CHAPTER 1 What Is Strategy? 4 CHAPTER 2 Strategic Leadership:

Managing the Strategy Process 32

CHAPTER 3 External Analysis: Industry Structure, Competitive Forces, and Strategic Groups 72

CHAPTER 4 Internal Analysis: Resources, Capabilities, and Core Competencies 116

CHAPTER 5 Competitive Advantage, Firm Performance, and Business Models 154

PART TWO / FORMULATION 190 CHAPTER 6 Business Strategy:

Differentiation, Cost

Leadership, and Blue Oceans 192

CHAPTER 7 Business Strategy: Innovation, Entrepreneurship, and Platforms 230

CHAPTER 8 Corporate Strategy: Vertical Integration and Diversification 276

CHAPTER 9 Corporate Strategy: Strategic Alliances, Mergers and Acquisitions 320

CHAPTER 10 Global Strategy: Competing Around the World 350

PART THREE / IMPLEMENTATION 388 CHAPTER 11 Organizational Design:

Structure, Culture, and Control 390

CHAPTER 12 Corporate Governance and Business Ethics 432

PART FOUR / MINICASES 459

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HOW TO CONDUCT A CASE ANALYSIS 460

PART FIVE / FULL-LENGTH CASESTwelve full-length cases are included in Connect. A total of 22 full-length cases are available through McGraw- Hill Create: www.mcgrawhillcr eate.com/rothaerm el

MINI CASES & FULL-LENGTH CASES

MINICASES /

1. Apple: What’s Next? 471 2. Starbucks CEO Kevin Johnson: “I’m not Howard Schultz” 475 3. BlackBerry’s Rise and Fall 480 4. Nike’s Core Competency: The Risky Business of Creating Heroes 482 5. Business Model Innovation: How Dollar Shave Club Disrupted Gillette

487 6. How JCPenney Sailed into a Red Ocean 489 7. Platform Strategy: How PayPal Solved the Chicken-or-Egg Problem

492 8. GE: Corporate Strategy Gone Wrong 495

http://www.mcgrawhillcreate.com/rothaermel
9. Disney: Building Billion-Dollar Franchises 499 10. Hollywood Goes Global 503 11. Yahoo: From Internet Darling to Fire Sale 508 12. Uber: Ethically Most Challenged Tech Company? 511

FULL-LENGTH CASES / The twelve cases included in Connect are noted below. All cases are available through McGraw-Hill Create: www.mcgrawhillcreate.com/rothaermel

1. Airbnb, Inc. * 2. Kickstarter >> + 3. Facebook, Inc. >> 4. SpaceX >> + 5. Delta Air Lines, Inc. 6. The Movie Exhibition Industry >> + 7. Starbucks Corporation 8. The Vanguard Group * 9. Better World Books and the Triple Bottom Line

10. McDonald’s Corporation >> 11. Best Buy Co., Inc. >> 12. Walmart, Inc. 13. Tesla, Inc. >> 14. Netflix, Inc. 15. Amazon.com, Inc. >> 16. Apple, Inc. >> 17. The Walt Disney Company >> 18. UPS in India