subject: The existence of a configuration of complementary activities should allow Links London [print this page] The existence of a configuration of complementary activities should allow Links London
As predicted by economic theory, complementarities among activities also help understand increasing return to scale, firm size and business growth even without the standard assumptions about economies of scale (Lindbeck and Snower, 2003; Carlaw, 2004). Geox's fast growth can be interpreted as the result of self-reinforcing, positive feedback effects between its positive performance and its configuration of complementary activities (Milgrom, Qian and Roberts,1991). (http://www.linksoflondon4lover.com/sweetie-bracelets-8-c-2.html)
From this standpoint, the Geox case also provides interesting insights in terms of business growth management. Until now, Geox's managers have concentrated on deepening a strategic position rather than broadening and compromising it. They have focused their efforts in making the company's activities more distinctive, in strengthening "fit", and in better communicating the strategy to customers. In terms of international markets, the firm has adopted a consistent approach to growth. Instead of broadening domestically (despite the recent launch of an apparel division), they have expanded globally, leveraging and reinforcing the company's unique position and identity.
In conclusion, we believe our study has explained why and how Geox is on a peak of the industry performance landscape. But what about the future? Can it keep on growing? And what if environmental conditions change? It is difficult to tell for how long Geox will enjoy its advantage, how big it will become and how profitable it will manage to remain. Undoubtedly, market saturation is a big risk, as well as the emergence of new technologies (especially materials) and the rise of the Chinese as original design and brand manufacturers and retailers.
From a research perspective, the future developments of the Geox case represent an ideal terrain for the further testing of theories of organizational fit in the face of environmental change (Siggelkow, 2001, 2002a). On the one hand, the existence of a configuration of complementary activities should allow Geox managers to optimally adjust all the choices (because of complementarities, the marginal benefit of adjusting each choice in response to environmental change is increased), and should make the firm more sensitive to external changes (the detection of which is more immediate, since, because of complementarities, they impact on multiple activities). On the other hand, codependent organizations like Geox are difficult to transform not only because environmental change questions the value of the organization's assets, but also because the task of changing simultaneously a large number of choices/activities can be too complex.
As organizations like Geox mature, become more complex, sophisticated and hierarchically articulated, managers find it more difficult to identify and make choices that are consistent and complementary, because of misperceptions, discretion, coordination costs and deviation of local incentives from global incentives. As a result, it is possible that companies like Geox either move away from performance peaks (even unintentionally) or do not evolve in the face of environmental change, rather choosing to rest at sticking points that are suboptimal. Strategies based on an excess of internal fit are potentially risky in face of uncertainty and turbulence. www.fad77.com
Therefore, managers have to have alternative options and continue exploring alternative sets of configurations (Siggelkow and Rivkin, 2002). In conclusion, while this case study provides an illustrative example of how to look for a distinctive way to compete in a mature industry, we would like to highlight how Geox, though being an Italian firm, operating in an industry where the national heritage is very strong, has moved far away from the Italian stereotypes. This is good news, for a country which desperately needs innovation, at all levels.
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