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Acoplasticos was established in 1961 as a lobbying group for Colombia's major plastics manufacturing companies. In the early 1980s, the organization shifted its focus toward improving the productivity of the Colombian plastics and rubber cluster, which also included certain petrochemical, manmade fiber, paint, and ink industries. Over time, the organization's activities expanded to include cluster technology upgrading, training, trade fair production, joint procurement, and information collection and dissemination. Despite significant improvement in the performance of the Colombian plastics and rubber cluster during the 1990s, however, Executive Director Carlos Garay was concerned about the challenging economic and political environment in 2002.

Provides an overview of the wide variety of organizations other than firms, government ministries and regulatory agencies, and universities that may have significant effects on competitiveness. These intermediary entities, referred to as institutions for collaboration (IFCs), include, for example, chambers of commerce, industry associations, professional associations, trade unions, technology transfer organizations, quality centers, think tanks, university alumni associations, and others.

Describes the history of Connecticut's economy, its competitive challenges in the 1990s, and the steps taken to develop an economic plan for the state. A prominent issue is the competitive position of Connecticut's industry clusters and the efforts to create a formal cluster development process involving state government, the private sector, and universities.

When it comes to philanthropy, executives increasingly see themselves as caught between critics demanding ever higher levels of "corporate social responsibility" and investors applying pressure to maximize short-term profits. Increasingly, philanthropy is used as a form of public relations or advertising, promoting a company's image through high-profile sponsorships. But there is a more truly strategic way to think about philanthropy. Corporations can use their charitable efforts to improve their competitive context--the quality of the business environment in the locations where they operate. Using philanthropy to enhance competitive context aligns social and economic goals and improves a company's long-term business prospects. Addressing context enables a company not only to give money but also leverage its capabilities and relationships in support of charitable causes. Taking this new direction requires fundamental changes in the way companies approach their contribution programs. Adopting a context-focused approach requires a far more disciplined approach than is prevalent today. But it can make a company's philanthropic activities far more effective.

Describes the economic integration efforts of the Central American countries in the late 1990s.

Describes the actions of Costa Rica President Figueres and his cabinet in attracting an Intel assembly and testing plant to their country. The effort was part of a government strategy that sought to develop further the Costa Rican electronics and information technology cluster.

Volvo Trucks has worked on a global strategy for several decades. Beginning in the mid-1970s, the company decided to enter the largest market for trucks: the United States. Over time, the company has struggled to get a significant share of the U.S. market and at the same time integrate operations around the world into a truly global strategy. However, the competitive structure (five-force model) differs significantly between Europe and the United States, and in spite of heavy investments, the global synergies seem far-fetched. This case illustrates clearly that entry and penetration of a market is a learning process for Volvo, where the initial strategic logic and underlying assumptions have to be changed several times.

Supplements the (A) case.

Supplements the (A) case.

Finland, with a special language and culture, has developed as a country in between the west (the Nordic region and Europe) and the east (especially its neighbor Russia). In the 1980s, a process started of moving out of an investment-driven economy into an innovation-driven one. With the collapse of the Soviet Union around 1990, Finland reached a crisis. This case covers policy changes made in the 1990s and how, by 2002, the country had managed to become one of the most competitive in the world. A large part of the success could be attributed to the dynamic telecommunications cluster--especially Nokia, accounting for some 70% to 80% of the cluster exports and the world leader in mobile phones. Nokia also reached a crisis around 1990.

Many of the pioneers of Internet business, both dot-coms and established companies, have competed in ways that violate nearly every precept of good strategy. Rather than focus on profits, they have chased customers indiscriminately through discounting, channel incentives, and advertising. Rather than concentrate on delivering value that earns an attractive price from customers, they have pursued indirect revenues such as advertising and click-through fees. Rather than make trade-offs, they have rushed to offer every conceivable product or service. It did not have to be this way--and it does not have to be in the future. When it comes to reinforcing a distinctive strategy, Michael Porter argues, the Internet provides a better technological platform than previous generations of IT. Gaining competitive advantage does not require a radically new approach to business; it requires building on the proven principles of effective strategy. Porter argues that, contrary to recent thought, the Internet is not disruptive to most existing industries and established companies. It rarely nullifies important sources of competitive advantage in an industry; it often makes them even more valuable. And as all companies embrace Internet technology, the Internet itself will be neutralized as a source of advantage. Robust competitive advantages will arise instead from traditional strengths such as unique products, proprietary content, and distinctive physical activities. Internet technology may be able to fortify those advantages, but it is unlikely to supplant them.

One of the steepest challenges a strategist faces is to navigate his or her company through a period of industry transformation--an era of rapid and wholesale changes in industry structure. This note considers how periods of transformation typically unfold. It then examines how the core tools of the strategist can be deployed during such periods and how new tools come to the fore. Periods of industry transformation pose grave threats and tremendous opportunities to companies. Industry leaders are often unseated during such times, replaced by underdogs and entrants. Perhaps most importantly, periods of transformation give companies unusual latitude to influence future industry structure. Teaching purpose: Designed to support course modules that consider strategy-making under uncertainty or the intersection of competitive strategy and technology.

During the past two decades, the number of charitable foundations in the United States has doubled while the value of their assets has increased more than 1,100%. As new wealth continues to pour into foundations, the authors take a timely look at the field and conclude that radical change is needed. First, they explain why. Compared with direct giving, foundations are strongly favored through tax preferences whose value increases in rising stock markets. As a nation, then, we make a substantial investment in foundation philanthropy that goes well beyond the original gifts of private donors. We should therefore expect foundations to achieve a social impact disproportionate to their spending. If foundations serve merely as passive conduits for giving, then they not only fall far short of their potential but also fail to meet an important societal obligation. Drawing on Porter's work on competition and strategy, the authors then present a framework for thinking systematically about how foundations create value and how the various approaches to value creation can be deployed within the context of an overarching strategy. Although many foundations talk about "strategic" giving, much current practice is at odds with strategy. Among the common problems, foundations scatter their funding too broadly, they overlook the value-creating potential of longer and closer working relationships with grantees, and they pay insufficient attention to the ultimate results of the work they fund. This article lays out a blueprint for change, challenging foundation leaders to spearhead the evolution of philanthropy from private acts of conscience into a professional field.

Edward Jones is a leading, highly profitable retail brokerage firm with a unique strategy very different from those of its rivals. The case describes Jones's activities and allows a rich discussion of its positioning choices, supporting activities, and tradeoffs. Jones must cope with a rapidly evolving industry, which, at least on the surface, is a threat to its strategy.

Describes the California wine cluster, or the group of interconnected wineries, grape growers, suppliers, service providers, and wine-related institutions located in California. Also describes the wine cluster in France, Italy, Australia, and Chile, the four other major international competitors.

Describes the competitive situation facing Robert Mondavi, the leading premium California winery. Mondavi has been an industry innovator and has recently taken steps to become more international. Mondavi has to cope with growing domestic competition as well as market share growth by wineries from Chile and Australia.

Supplements the (A) case.

Describes the history and current situation in the retail pharmacy industry, including competition from new merchants and Internet drugstores. Eckerd, one of the top four drug chains, must decide how to position itself for the future.

After years of success with its vaunted "Direct Model" for computer manufacturing, marketing, and distribution, Dell Computer Corp. faces efforts by competitors to match its strategy. The case 'Matching Dell' describes the evolution of the personal computer industry, Dell's strategy, and efforts by Compaq, IBM, Hewlett-Packard, and Gateway 2000 to capture the benefits of Dell's approach. Students are called on to formulate strategic plans of action for Dell and its various rivals.

Spreadsheet supplement for case 799-158.