BUS 109 Chapter Notes - Chapter Theory of the Firm: Harvard Business Review, Blue Ocean Strategy, Corporate Social Responsibility
Document Summary
There are a number of schools of thought on competition in relation to business strategy. In the article, (cid:862)what is the theor(cid:455) of (cid:455)our fir(cid:373)? (cid:863) (cid:271)(cid:455) todd )e(cid:374)ger, he e(cid:373)phasizes the i(cid:373)porta(cid:374)(cid:272)e of (cid:272)o(cid:374)ti(cid:374)ued (cid:448)alue (cid:272)reatio(cid:374) for a (cid:272)o(cid:373)pa(cid:374)(cid:455)"s success. He argues that creating a blue ocean is not synonymous with sustained growth, which can only be achieved (cid:271)(cid:455) a (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:449)illingness to create value. By saying this, zenger contrasts himself from michael porter by denying that a competitive advantage is the only crucial aspect of being successful. Instead he introduces the concept of corporate theory which is the ways a company keeps creating value. Continuously creating value is a difficult task for any company, particularly well-established ones that are set in their ways. Google is one such company that proves )e(cid:374)ger"s argu(cid:373)e(cid:374)t (cid:449)ith their tra(cid:272)k re(cid:272)ord for constant innovation and value creation. Their search engine is the gold standard and their email services are unparalleled.
