Open AccessAdaptive Strategies And Survival In An Environment Dominated By Economic Decline
Author(s) -
L. Marie Bacot,
Sandra J. Hartman,
O. Lundberg
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v9i1.6092
Subject(s) - diversification (marketing strategy) , business , medical prescription , sample (material) , position (finance) , economics , marketing , finance , medicine , chemistry , chromatography , pharmacology
Hall (1980) described the hostile environment to be faced by organizations during the decade ahead and provided prescriptions for dealing with a hostile environment. Our study examined 25 firms operating in an economically depressed area containing a number of elements corresponding to Halls hostile environment. Specifically, we sought to identify adaptive survival strategies used by the sample of firms. We then related the observed strategies to Halls prescriptions. Generally, the firms employed one or both of the strategies prescribed by Hall: (a) lowest delivered cost and (b) differentiated position. While Hall cautioned against diversification, firms in this study did diversify, primarily through acquisition or by modifying technologies for use in other markets.