Enterprise Strategic Flexibility

Using system dynamic model that captures the enterprise strategic behavior of two competing enterprise, this study explore and analyze the strategic benefit of gaining volume flexibility capability considering both the expected behavior of competition and the market dynamics. By conducting a game theoretic comparative analysis for simultaneous decisions made by competitors under different market scenarios in different industry and market setups, results shows, to achieve high productivity, profitability, efficiency and maximum utilization rate, industrial enterprise should select from a wide range of strategic capabilities that match the state of its external environment requirements with responsive rate that matches the product life cycle span.