Companies do not only compete in markets; they also compete on social and political issues. Depending on the business opportunities or threats they identify related to an issue, companies will behave as veterans that defend the status quo in an industry, as reformers that will work with the authorities to change the rules of the game, or as heroes that help solve an issue. In this article, we identify the typical elements of success for each of these three generic nonmarket strategies. We do this based on a framework that focuses on the framing of issues, the alliances that can be mobilized around an issue, and the arenas that can be used to make a move.
MY TAKE ON STRATEGY 1
In 1979, Michael Porter2 observed that managers were too focused on their market positioning against direct rivals. He argued that rivalry within an industry is only one of five competitive forces. The other four are the bargaining power of buyers and suppliers and the threat from substitution and new entrants. Porter also illustrated how these competitive forces shape strategy. He argued that by analyzing their industry, managers will know better how to choose between two generic strategies: low-cost or differentiation strategies. This is still what we teach in business schools today and what is practiced by most companies. Many other contributions followed to help companies formulate differentiation strategies with concepts, such as customer intimacy,3 and blue oceans.4
By analyzing their industry, managers will know better how to choose between two generic strategies: low-cost or differentiation strategies.
In 1995, David Baron5 broadened the concept of strategy from market strategy towards integrated strategies with market and nonmarket components. Companies indeed do not only compete in markets; they also compete on social and political issues. Issues can mature from something that a few activists care about to mainstream concerns that can change societies and trigger government interventions. These interventions can impact companies directly, or indirectly via their suppliers, buyers, rivals, or substitutes. Interventions can be a threat as well as an opportunity; they can open or foreclose new markets; they can create a cost advantage or disadvantage; they can change the price setting in your industry; they can handicap or propel new entrants. Baron also introduced the I^4 framework6 with issues, interests, institutions, and information to help companies analyze their nonmarket environment in analogy with the Porter framework to analyze their industry or market environment.
In 2017, Sinziana Dorobantu, Assem Kaul, and Bennet Zelner7 proposed a nonmarket strategy topology from the perspective