ch12 - Grant_Strategy - Competitive Advantage in Mature...

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Competitive Advantage in Mature Industries Examples of Mature industries FOOD, ENERGY, CONSTRUCTION, VEHICLES, STEEL, HOTEL, TEXTILES, CARS
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Key Success Factors in Mature Industries Opportunities for sustainable -- limited potential for differentiation competitive advantage are -- technology stable and well diffused limited -- ease of entry due to well developed industry infrastructure and powerful distributors -- international competition : domestic cost advantage vulnerable Sources of -- Economies of scale cost advantage -- Low-cost inputs -- Low overheads Segment and customer -- As general industry environment selection deteriorates, important to locate attractive segments and woo good customers. Sources of differentiation -- Emphasis on image differentiation and advantage differentiation through complementary services. Sources of innovation -- Limited opportunity for product and process innovation but considerable opportunity for strategic innovation
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ch12 - Grant_Strategy - Competitive Advantage in Mature...

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