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Successful bear‐fighting strategies
Author(s) -
Schreuder Hein,
Van Cayseele Patrick,
Jaspers Patrick,
De Graaff Bert
Publication year - 1991
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250120705
Subject(s) - differential (mechanical device) , value (mathematics) , industrial organization , phenomenon , business , index (typography) , economics , marketing , engineering , physics , quantum mechanics , machine learning , computer science , aerospace engineering , world wide web
Abstract This paper explores the factors involved in determining the differential performance of firms in bear markets. Bear markets are identified at the industry level by employing the criterion of a 20 percent drop of the industrial value added index over a period of at least 3 years. Twenty‐one matched pairs of Dutch firms which have experienced such bear markets (one successful, the other unsuccessful), are analyzed. The dominant finding is that successful firms follow market‐oriented strategies, whereas their unsuccessful counterparts are distinguished by their focus on costs. Success, however, is a multifaceted phenomenon. Differences in initial conditions, in other types of strategic measures, in energy levels and in timing are also involved. The findings are related to the literatures on decline, failure, turnaround and transformation.