Compare methods

	Firm Survival and Exit Analysis	Strategic Value Chain Analysis
Field	Strategic Management	Strategic Management
Family	Survival analysis	Process / pipeline
Year of origin	1995	1985
Originator	David B. Audretsch & Talat Mahmood; Paul A. Geroski	Michael E. Porter
Type	Hazard / duration model of firm survival and exit	Activity-decomposition pipeline for competitive advantage
Seminal source	Audretsch, D. B., & Mahmood, T. (1995). New Firm Survival: New Results Using a Hazard Function. The Review of Economics and Statistics, 77(1), 97-103.	Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press, New York. ISBN: 9780029250907
Aliases	Firm Exit Hazard Modeling, Business Survival Duration Analysis, Post-Entry Firm Survival Analysis, Firm Mortality Hazard Models	Porter Value Chain Analysis, Value Chain Framework, Activity-Based Competitive Advantage Analysis, Value System Analysis
Related	3	4
Summary	Firm survival and exit analysis applies hazard and duration models to the question of why some firms survive and others fail, treating the age at which a firm exits the market as a time-to-event outcome. Audretsch and Mahmood's 1995 study of more than twelve thousand U.S. manufacturing establishments showed that a hazard function can relate post-entry survival not only to industry and market-structure conditions but to firm-specific characteristics such as size, innovative activity, and scale economies. Geroski's 1995 survey of entry placed this within the broader dynamics of industries, where high entry rates coexist with high exit rates and most entrants fail young. The method gives strategy researchers a rigorous way to measure the instantaneous risk of failure and to identify which firm and environmental factors push it up or down.	Strategic value chain analysis disaggregates a firm into the discrete activities through which it designs, produces, markets, delivers, and supports its product, in order to locate the sources of cost advantage and differentiation that underlie competitive advantage. The framework is Michael Porter's, introduced in his 1985 Competitive Advantage, where he divides the firm's activities into five primary categories — inbound logistics, operations, outbound logistics, marketing and sales, and service — and four support categories — firm infrastructure, human resource management, technology development, and procurement — with margin as the difference between total value created and total cost. Porter argued that competitive advantage cannot be understood by looking at the firm as a whole but must be traced to the way particular activities are performed and linked. The analysis extends outward to the value system linking suppliers, the firm, channels, and buyers.