Henderson emphasizes the importance of industry structure in shaping business strategy. He argues that the structure of an industry, including factors such as competition, barriers to entry, and supplier power, determines the potential for profitability and growth. Companies must understand the underlying structure of their industry and position themselves accordingly. For example, in a highly competitive industry, a company may need to focus on differentiation or cost leadership to achieve a sustainable advantage.
: Low growth, high share; generating the cash used to fund other units. the logic of business strategy bruce henderson pdf
"To be successful, a company should have a portfolio of products with different growth rates and different market shares. The portfolio composition is a function of the balance between cash flows." Henderson emphasizes the importance of industry structure in
Bruce Henderson was a renowned American businessman, consultant, and author. He is best known for founding BCG in 1963, which would go on to become one of the world's most prestigious management consulting firms. Henderson was a pioneer in the field of business strategy, and his ideas have had a lasting impact on the way companies approach strategic planning. For example, in a highly competitive industry, a
In the canon of modern management theory, few documents are as foundational or as transformative as the work produced by Bruce Henderson in the early 1970s. While often searched for under the title "The Logic of Business Strategy," the seminal text is formally titled (published by the Boston Consulting Group in 1970).
If your competitor has double your cumulative volume, they have a structural cost advantage that you cannot beat by trying harder. You can only beat them by growing faster (to climb the curve) or by segmenting the market where your volume is higher.
Bruce Henderson’s The Logic of Business Strategy (1984) is a seminal work that formalizes the concepts used to build the Boston Consulting Group (BCG)