Competitors may not be out to maximise firm value, or they may hold different beliefs about the business landscape or may behave in ways that have a hard wired component, reflecting inertia rather than purposeful choice. This framework helps to predict their behaviour by taking such possibilities into account.

Its three main components are 1) Goals, Stated and Latent , 2) Beliefs, Explicit and Tacit, 3) Routines and other sources of Inertia

Strategy and the Business Landscape