Quality and reliability next they invested in

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quality and reliability Next, they invested in marketing channels and Japanese brand name
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recognition; new layer of comparative advantage of global brand franchise Led to the introduction of new products like VCRs and photocopiers and to the establishment of regional manufacturing to adapt products to local market needs Searching for Loose Bricks Take advantage of the “loose bricks” (i.e., search for opportunities) in the defensive walls of competitors whose attention is narrowly focused on A market segment A geographic area to the exclusion of others E.g., Intel’s loose brick was its narrow focus on complex microprocessors for PCs. But demand for non-PC consumer electronics products (digital cameras, smartphones, tablets) began to explode and these products require chips that are cheaper and use less power than those produced by Intel Changing the Rules of Engagement Refuse to play by the rules set by industry leaders Innovative marketing strategies can lead to overall competitive advantage in the marketplace E.g., in the copier market, IBM and Kodak imitated the marketing strategies used by Xerox (market leader), but Canon didn’t Xerox employed a huge direct sales force; Canon chose to use product dealers Xerox built a wide range of copiers; Canon standardized machines and components Xerox leased machines; Canon sold machines Collaborating Collaborating: use the know-how developed by other companies Licensing agreements, joint ventures, or partnerships Examples: in the aircraft industry, Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to US firms and also work as subcontractors for aircraft parts and systems Chapter 17 Lean Production: Organizing the Japanese Way Competitive advantage gained from increased productivity
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