CORPORATE STRATEGY AND BUSINESS STRATEGY FOR COMPETITIVE ADVANTAGE IN THE AGE OF DEREGULATION

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  • 規制緩和下における電力会社の戦略 : 競争戦略と全社戦略の統合
  • キセイ カンワ カ ニ オケル デンリョク ガイシャ ノ センリャク : キョウソウ センリャク ト ゼンシャ センリャク ノ トウゴウ

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Abstract

This paper analyzes how power electric companies in Japan should select the business strategy and corporate strategy to gain and sustain competitive advantage in the age of deregulation which advances rapidly in energy industry. In business strategy, on condition that deregulation advances rapidly and dispersive power plants increase in power electric industry, they look for the best business strategy. Under the condition that there is little uncertainty, they should select static strategy like positioning strategy (market positioning view) and resource strategy (resource-based view), however under the condition that uncertainty increase, they should select dynamic strategy like game strategy and learning strategy in addition to static strategy to gain and sustain competitive advantage. As it is particularly difficult to differentiate electric power as product, they need to select cost leadership strategy. Therefore they should select strategic alliance and mergers & acquisition to utilize economies of scale. In corporate strategy, although they have already embarked on communication, gas, care and life support business etc. in deregulation, they do not gain and sustain competitive advantage for them. They look for the best corporate strategy. When they take into consideration the fact related diversification has high profit in Rummelt (1974) research, the strategy which power electric companies in the West select is related diversification, they should select related diversification strategy to utilize economies of scope. Then they should utilize strategic alliances and mergers & acquisition. Concretely, although they have already embarked on gas business to look for synergy effect, they have little market share. Therefore they should acquire a gas company in the same area to utilize economies of scope. Finally, in terms of economies of scale and scope, we need to think about the theory which integrates business strategy and corporate strategy based on strategic alliances and mergers & acquisition.

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