Research Notes and Communication
Competitive strategy under uncertainty
Article first published online: 8 NOV 2006
Copyright © 1987 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 8, Issue 2, pages 187–194, March/April 1987
How to Cite
Wernerfelt, B. and Karnani, A. (1987), Competitive strategy under uncertainty. Strat. Mgmt. J., 8: 187–194. doi: 10.1002/smj.4250080209
- Issue published online: 8 NOV 2006
- Article first published online: 8 NOV 2006
- Manuscript Revised: 25 MAR 1985
- Manuscript Received: 10 MAY 1984
Competitive strategy under uncertainty involves a trade-off between acting early and acting later after the uncertainty is resolved, and another trade-off between focusing resources on one scenario and spreading resources on several scenarios, thus maintaining flexibility. This paper analyzes both these trade-offs taking into consideration the nature of uncertainty, industry economics, intensity of competition, and the position of a firm relative to its competitors.