Building Blocks of the Industry and Strategizing

Abstract

Industry features are considered by Porter, Schmalensee, and many other scholars as the determinants of effective strategy formulation and implementation. While industries are widely different from each other, some common features shape all existing and future industries. This chapter aims to identify these common building blocks of industries and their possible effects on strategizing for the future in a fast transitioning business world. The chapter employs a systematic literature review from the top related journals with at least one of the nine keywords about the industry. The chapter reviews 47 factors or characteristics that form every industry. These industry features are grouped into ten sets of elements, which shapes the ten forces framework, reflecting the interaction among building-blocks of the industry with each other and with strategy implementation practice inside an organization. The chapter concludes by proposing the 'macro-environment, industry, and organization' (MIO) model, which could be utilized by integrating three levels of analyses.