In his seminal work, The Logic of Business Strategy, Bruce Henderson, the founder of the Boston Consulting Group (BCG), argues that strategy is a deliberate search for a plan of action that builds and compounds a business's competitive advantage. Henderson views business competition through a lens similar to natural selection, where success depends on identifying and exploiting the fundamental differences between your company and its rivals. Core Strategic Concepts
For further reading, you can find original essays and perspectives through the BCG Henderson Institute or historical archives at Harvard Business Review. the logic of business strategy bruce henderson pdf
Henderson identifies two types of competitive advantage: structural and positional. Structural advantages arise from a company's position in the industry, such as its market share or access to resources. Positional advantages, on the other hand, arise from a company's specific actions and decisions, such as its ability to innovate or its commitment to quality. Henderson argues that companies should focus on creating positional advantages, as these are more sustainable and difficult for competitors to replicate. In his seminal work, The Logic of Business
The Concept of Competitive Advantage
To implement this logic, Henderson outlined several necessary factors: Henderson argues that companies should focus on creating
Understanding the "logic" means recognizing that strategy isn't just a list of goals—it's a rigorous analysis of cost, market share, and differentiation within a complex, living system.