Strategy -15

One could look at the earlier blog from another perspective - i.e. assume a firm begins operations with a well-developed theory and the market is the test of that theory; management at regular intervals would make adjustments to the theory to be able to generate competitive advantage.

One could always look at emergent strategies as a failure of a management's ability to understand the economic processes; however this opens up the question of exploiting opportunities. While it is good to analyze the industry's underlying economics process and create a strategy to handle that, but as the company begins to operate more avenues of business might open up which might not have been hitherto spotted and create a larger returns to the firm!

Another way of looking at the use of emergent strategy is when you think of the company who adopts a "second mover" strategy. These companies don’t explicitly lead the market creation or exploitation process, they merely follow the leaders. In the process they rely heavily on their ability to adapt quickly to the strategy that other firms demonstrate to be valuable ones.

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