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Differentiation strategies in ‘stalemate industries’
Author(s) -
Calori R.,
Ardisson J. M.
Publication year - 1988
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250090305
Subject(s) - punctuality , competitor analysis , stalemate , product differentiation , quality (philosophy) , profitability index , business , industrial organization , product (mathematics) , marketing , cannibalization , position (finance) , new product development , strategic management , economics , microeconomics , engineering , cournot competition , finance , politics , philosophy , geometry , mathematics , epistemology , transport engineering , law , political science
Empirical studies conducted at the Institut de Recherche de l'Entreprise (Lyon, France) show that, in ‘stalemate industries’ (cf. the BCG's typology, 1981), differentiation strategies are effective and profitable alternatives to the usual strategic recommendations. The knowledge of customers' behavior shows up several opportunities for differentiation, hidden by some kind of ‘strategic presbyopia’. Total quality or ‘zero default’ strategy (product quality regularity, punctuality of deliveries, quick response to unexpected orders, quick and correct answers to requests, short delivery times) is the major opportunity for differentiation. Such strategies are compatible with a low‐cost position; excellent companies which succeeded in building this ‘total advantage’ (diferentiation + low cost) over their competitors enjoy the highest market share growth and profitability.