search query: @author Montgomery, C. A. / total: 15
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| Author: | Wernerfelt, B. Montgomery, C. A. |
| Title: | What is an attractive industry? |
| Journal: | Management Science
1986 : OCT, VOL. 32:10, p. 1223-1230 |
| Index terms: | COMPANY PERFORMANCE STRATEGIC PLANNING |
| Language: | eng |
| Abstract: | Business portfolio planning techniques often suggest that firms should invest in industries with high profitability, high growth,or other attractive characteristics. Critiquing this view it is suggested that the same factors which lead to high profitability in an industry may cause its inefficient participants to earn lower profits. Higher growth may benefit inefficient firms while reducing the gains of efficient competitors. A theory and evidence are offered to support this view of performance dependencies for the special case of diversified firms. |
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