Once the corporate strategist has assessed the forces affecting competition in his indus-try and their underlying causes, he can identify his company’s strengths and weaknesses. The crucial strengths and weaknesses from a strategic standpoint are the company’s posture vis-à-vis the underlying causes of each force. Where does it stand against substi-tutes? Against the sources of entry barriers?
Then the strategist can devise a plan of action that may include (1) positioning the company so that its capabilities provide the best defense against the competitive force; and/or (2) influencing the balance of the forces through strategic moves, thereby im-proving the company’s position; and/or (3) anticipating shifts in the factors underlying the forces and responding to them, with the hope of exploiting change by choosing a strategy appropriate for the new competitive balance before opponents recognize it. I shall consider each strategic approach in turn.