In a global economy, sustained competitive advantage arises from tackling social, political and environmental issues as part of a corporate strategy — not just pursuing business as usual.
Business strategy begins with operations, the competitive landscape and markets. But David Bach and
David B. Allen of the IE Business School Center for Nonmarket Strategy argue that strategy should not
end there. Rather, a robust nonmarket strategy that addresses government regulation, political and
social movements, even activist opposition should figure strongly in any strategy.
Nonmarket strategy starts with the premise that issues and actors “beyond the market” affect the
bottom line. Which nonmarkets are most important? That depends on the key issues a company confronts. By identifying key issues, and then the actors who are shaping them, a company can begin to shape the nonmarket–a crucial approach when the issue is core to the underlying market as well.
4 Comments On: What Every CEO Needs to Know About Nonmarket Strategy
This was a great article and gave me insight into the field of non-market strategies.
The examples of corporations taking the right approaches and those that make mistakes really helped to clarify the ideas.
I appreciated this insightful analysis especially in the light of complex social and political environmemnts modern businesses find themselves.
The ia3 tool will be useful in many boardrooms and at executive level.
Mabuse Hlalele
Pretoria, South Africa
I found this article to be vrey insightful. The inclusion of (ia)3 model was a great benefit.
As I read this, and especially with the references to BP, I could help but speculate how today’s current problems in the gulf are an example of NOT recognizing and managing the nonmarket aspects- even for the current US administration.
Good job.
I call it a great revelation in modern business, it will surely be a reference piece in my business endeavor. Thank you.