FORMULATION OF STRATEGY Once the corporate strategist has assessed the forces affecting competition in his industry and their underlying causes, he can identity his com- pany's strengths and weaknesses. The crucial strengths and weaknesses from a strategic stand- point are the company's posture vis-a-vis the un- derlying causes of each force. Where does it stand against substitutes? Against the sources of entry barriers? Then the strategist can devise a plan of action that may include(1) positioning the com- pany so that its capabilities provide the best de- fense against the competitive force: andor(2) influencing the balance of the forces through sta- tegic moves, thereby improving the company's position; andor(3) anticipating shifts in the fac- tors underlying the forces and responding to them