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The Lessons of Strategic Leverage

The Lessons of Strategic Leverage Many managers are failing to understand and exploit their strategic leverage. They often become obsessed with strategic tactics designed to achieve a shortterm gain and lose sight of the competitive dynamics, industrial economics, and longterm horizon of their businessin short, the fundamentals behind their strategic leverage. Strategic leverage is defined as a company's maneuver its ability to change its competitive position in a market multiplied by its return changes in revenue, market share, or both that result from any maneuver. If a company can change its position and the market rewards it for the change, its strategic leverage is high if not, it is low. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Strategy Emerald Publishing

The Lessons of Strategic Leverage

Journal of Business Strategy , Volume 13 (4): 8 – Apr 1, 1992

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0275-6668
DOI
10.1108/eb039505
Publisher site
See Article on Publisher Site

Abstract

Many managers are failing to understand and exploit their strategic leverage. They often become obsessed with strategic tactics designed to achieve a shortterm gain and lose sight of the competitive dynamics, industrial economics, and longterm horizon of their businessin short, the fundamentals behind their strategic leverage. Strategic leverage is defined as a company's maneuver its ability to change its competitive position in a market multiplied by its return changes in revenue, market share, or both that result from any maneuver. If a company can change its position and the market rewards it for the change, its strategic leverage is high if not, it is low.

Journal

Journal of Business StrategyEmerald Publishing

Published: Apr 1, 1992

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