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Yet although the lay observer can understand the reasons for these corporate break-ups, the frameworks and ideas that underpin strategy theory are actually pretty unhelpful when considering whether or not to initiate a break-up. We know this because both businesses earn returns that are reasonable for their industries.
Anyone taking the time to delve into the literature of strategy quickly realizes that there are two fiercely opposed camps. In the red corner we have the “ positioning school ” (TPS) and in the white we have the “ resource-based view of the firm ” (RBV). Strategies for staying ahead. Insight Center.
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