Article Review #1: Location, Location, Location: The Strategy of Place
SEC 1: SUMMARY
In this article, a teacher in Strategy Unit at Harvard Business School whose name is Professor Juan Alcácer talks about the necessary function of taking and considering a long-term geographic strategic view in expanding business whether in a nearby town or around the world expansion. This article also highlighted the tactical checkers, discusses the importance and essential role of time consideration to open a new operation and the factors that needs to be consider in expanding operations internationally. Within the article are some companies and business firms that act as an example in explaining further the ideas presented such as the Walmart Company, Pixar Company and others.
Professor Alcácer mentioned the three things that pertains the company’s strategic value; company who plays strategic chess is better than of those who plays tactical checkers; and says that the decision to expand is sometimes driven by the wrong reasons. True enough that many companies today are tempted to expand their operation to a new locations because they think and believe that geographic strategy is a short-term checkers match and not as a long-term chess game. This is what Professor Alcácer emphasizes that a company should consider geographic strategy as a long-term chess game because many companies of today assumes that when their business is at its best performance in their base location it will also be in its best performance in other location that is why they engaged in expansion. The Walmart Company is the best example of being a strategic player, which is considered the best expander. This variety store was owned by Sam Walton, which expands the business strategically by opening branch first in small rural towns and later in urban areas.
In the article the author have had mentioned how important not just money but the time and energy of managers in expanding...
Please join StudyMode to read the full document