Strategic Positioning, Centrality and the Impact on Company Profitability
Strategic Positioning, Centrality and the Impact on Company Profitability
This study examines how strategic positioning in industry may predict a firm’s performance. Through simulation, we reveal that certain business positioning strategies correlate with eventual centrality and profit while other strategies correlate with isolation and poor performance. The paper also presents a novel classification method for centrality trajectories in industry, one that may be employed more generally as a predictor of industry change over time.Field of Research: Applied Finance and International Finance