The objective of this diploma thesis is to provide a practice-orientated contribution to the strategy process and strategic concepts to be applied in networks. It is evaluated how the models of the traditional strategy processes and strategic concepts are applicable in a network context.
Concerning the strategy process, the result is that the traditional strategy process is basically useable. Additionally however, completely new requirements arise with the integration in networks. It is intended to meet those new requirements with the interdependence matrix for strategic-decision making in the markets-as-networks context that is presented in this work.
The strategic concepts, like the market-based view and the resource-based view, are of high importance in a network context as well. Those concepts have their limits and therefore necessary adaptations are given. Apart from those concepts, networks by itself provide a source of competitive advantage, which is neglected in the traditional theories. Hence, various self-contained network theories are presented.
The case study was conducted in cooperation with the company Unaxis Data Storage, a highly de-integrated network company operating in the information technology industry. The goal of the case study is to compare the theoretical findings with the real business world. It is evaluated which of the strategy processes and strategic concepts presented in the theoretical part are applied in the company. In summary, it can be said that many of those theories are already used. However, it is evident that there are a few areas of possible improvements.
Table of Contents
1 INTRODUCTION AND RESEARCH QUESTION
2 TRADITIONAL STRATEGY APPROACH
2.1 Introduction
2.2 The strategy process
2.2.1 Outline and definition
2.2.2 Strategy formulation
2.2.3 Strategy implementation
2.3 Strategic concepts
2.3.1 Outline and definition
2.3.2 Market-based view
2.3.3 Resource-based view
2.3.4 Other concepts
2.3.4.1 Strategic integration models
2.3.4.2 Concept of strategic intent
2.4 Evaluation
2.4.1 The strategy process
2.4.2 Strategic concepts
3 NETWORK APPROACH TO STRATEGY
3.1 Introduction
3.1.1 Classification of networks
3.1.2 Strategic networks
3.2 The strategy process in networks
3.2.1 Introduction
3.2.2 Suitability of the traditional strategy process
3.2.2.1 Formulation of strategy
3.2.2.2 Strategy implementation
3.2.3 Specific strategy process for application in a network environment
3.3 Strategic concepts in networks
3.3.1 Suitability of traditional strategic concepts
3.3.1.1 Market-based view
3.3.1.1.1 Strategic groups
3.3.1.1.2 Value Chain
3.3.1.2 Resource-based view
3.3.1.3 Other concepts
3.3.1.3.1 Integration models
3.3.1.3.2 Concept of strategic intent
3.3.2 Specific strategic concepts for application in a network environment
3.3.2.1 Co-opetition
3.3.2.2 The relational view
3.3.2.3 Creating network competence
3.3.2.4 Network governance
3.3.2.5 Management of heterarchical networks
3.4 Evaluation
4 CASE STUDY: UNAXIS DATA STORAGE
4.1 Introduction
4.2 The company
4.3 Analysis of the traditional strategy approach
4.3.1 Strategy process at Unaxis Data Storage
4.3.2 Strategic concepts at Unaxis Data Storage
4.3.2.1 Market-based view
4.3.2.2 Resource-based view
4.3.2.3 Other concepts
4.4 Analysis of the network approach to strategy
4.4.1 The network of Unaxis Data Storage
4.4.2 Strategy processes in the network management of Unaxis Data Storage
4.4.2.1 Application of the traditional strategy process in networks
4.4.2.2 Specific strategy process for application in a network environment
4.4.3 Strategic concepts in the network management of Unaxis Data Storage
4.4.3.1 Application of traditional strategic concepts
4.4.3.1.1 Market-based view
4.4.3.1.1.1 Strategic groups
4.4.3.1.1.2 The value chain
4.4.3.1.2 Resource-based view
4.4.3.1.3 Other concepts
4.4.3.1.3.1 Integration models: Markets-as-networks
4.4.3.1.3.2 Strategic intent
4.4.3.2 Specific strategic concepts for application in a network environment
4.4.3.2.1 Co-opetition
4.4.3.2.2 The relational view
4.4.3.2.3 Creating network competence
4.4.3.2.4 Network governance
4.4.3.2.5 Management of heterarchical networks
4.5 Future outlook
4.6 Evaluation
5 CONCLUSION AND OUTLOOK
Objectives and Topics
This thesis aims to analyze strategy requirements stemming from business network integration by evaluating the applicability of traditional strategy processes and concepts. The core research question addresses the influence of business networks on a company's strategy, utilizing a case study of Unaxis Data Storage to compare theoretical frameworks with real-world business practices.
- Theoretical analysis of traditional strategy approaches versus network-based strategy requirements.
- Evaluation of strategy processes and strategic concepts in complex network environments.
- Identification of successful network strategies using the Interdependence Matrix.
- Empirical assessment of Unaxis Data Storage's strategic network management practices.
- Recommendations for improving strategic outcomes through network integration and relational management.
Extract from the Book
Strategic leadership
As said before, the strategic network is characterized through leadership by one or more focal firms. The focal firm determines the nature and content of the strategy and designs mode and content of the interactions and relationships. The strategies that are partly designed in cooperation are tried to be implemented within the whole network. Strategic networks are more than others the result of intended actions. Also Jarillo sees the existence of a hub firm as essential to set up the network and to take a pro-active role.
Related to the issue of strategic leadership is that of power in networks. The topic is briefly addressed at this point because of its high relevance in networks. The most common definition of power comes from Weber: “Power is the ability of a person to designate the behavior of another person.” A more specific definition comes from Rajan/Zingales. They define power “[…] as the control over valuable resources over and above that determined through explicit contracts in a competitive market.” Power in networks is dependent on the refusal, coordination and control possibilities, on the available resources as well as on the coalition alternatives.
The focal firm partly owns such instances of power, although in fact the focal firm is restricted in their ability to play with power due to the legal and economic independence of the network members and the voluntariness of the cooperation.
Summary of Chapters
1 INTRODUCTION AND RESEARCH QUESTION: This chapter outlines the challenge of traditional strategy in turbulent, network-integrated markets and defines the thesis's research question regarding how networks influence company strategy.
2 TRADITIONAL STRATEGY APPROACH: This section provides a comprehensive overview of existing strategy processes and concepts, serving as a baseline for the subsequent comparative analysis.
3 NETWORK APPROACH TO STRATEGY: This chapter examines the adaptation of strategy processes and concepts to a network context, introducing specific frameworks like the interdependence matrix to manage increased complexity.
4 CASE STUDY: UNAXIS DATA STORAGE: The empirical heart of the thesis, which applies the theoretical network strategy frameworks to analyze the real-world operations and strategic challenges of Unaxis Data Storage.
5 CONCLUSION AND OUTLOOK: The final chapter summarizes the thesis's findings, affirming the practical relevance of applying network-based strategic concepts for modern, highly de-integrated companies.
Keywords
Strategic Network Management, Business Networks, Strategy Process, Resource-Based View, Market-Based View, Competitive Advantage, Unaxis Data Storage, Network Competence, Co-opetition, Transaction Cost Theory, Interdependence Matrix, Relational View, Network Governance, Strategic Intent, Heterarchical Networks
Frequently Asked Questions
What is the core focus of this diploma thesis?
The thesis focuses on how the increasing integration of companies into business networks challenges traditional strategic planning and management approaches, and how these strategies must adapt to remain effective.
What are the central thematic fields?
The work covers three main areas: the analysis of traditional strategy processes, the identification of theories suited for networks, and the empirical case study of Unaxis Data Storage.
What is the primary research question?
The research asks: "How do business networks influence a company’s strategy?"
Which scientific methodology is employed?
The research combines an extensive literature review to establish theoretical frameworks with a qualitative empirical approach, using open-ended interviews with management at Unaxis Data Storage to compare theory with business practice.
What does the main body of the work cover?
It provides a deep dive into "Traditional Strategy Approaches" and the "Network Approach to Strategy," followed by a detailed case study applying these concepts to the operational realities of a de-integrated company.
Which keywords best characterize this work?
Core keywords include Strategic Network Management, Competitive Advantage, Network Competence, Co-opetition, and Resource-Based View.
How does the work explain the shift from traditional strategy to network-based strategy?
It argues that the "atomistic actor" model in an impersonal marketplace is increasingly inadequate, requiring companies to move toward an integrated approach that manages complex interdependencies with network partners.
What role does Unaxis Data Storage play in this research?
Unaxis Data Storage serves as a representative case study of a highly de-integrated company in the turbulent IT sector, allowing the author to assess whether the proposed theoretical frameworks for network strategy are actually applied in real business scenarios.
- Arbeit zitieren
- Volker Amann (Autor:in), 2005, Strategic Network Management on the example of the company Unaxis Data Storage, München, GRIN Verlag, https://www.hausarbeiten.de/document/65326
