Chapter 12 - Competitive advantage in mature industries. This chapter presents the following content: Key success factors in mature industries; strategic implementation: structure, systems, style; strategies for declining industries. | Competitive Advantage in Mature Industries Key success factors in mature industries Strategic Implementation: Structure, Systems, Style Strategies for declining industries OUTLINE 22 Competitive Advantage in Retailing: Retailers with the Highest and Lowest Valuation Ratios TOP 15 Valuation Sales Ratio ($,bil.) (US) . Caremark Rx (US) Expedia Autozone (US) Hennes & Mauritz (Swe.) Next (UK) Bed, Bath & Beyond (US) Woolworth (Australia) Gap (US) TJX (US) Inditex (Spain) Wal-Mart (US) Radio Shack Family Dollar Stores Best Buy (US) Toys-R-Us . Penny (US) Federated Dept. Stores (US) J. Sainsbury (UK) Ito-Yokado (Japan) Ahold Safeway plc (UK) Pinault-Printemps -Redoute (France) Sears Roebuck (US) Dixons Group (UK) Albertson’s (US) May Department Stores (US) Office Depot (US) CVS Kingfisher (UK) BOTTOM 15 Valuation Sales Ratio ($, bil.) 23 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 25 Sources of Strategic Innovation in Mature . | Competitive Advantage in Mature Industries Key success factors in mature industries Strategic Implementation: Structure, Systems, Style Strategies for declining industries OUTLINE 22 Competitive Advantage in Retailing: Retailers with the Highest and Lowest Valuation Ratios TOP 15 Valuation Sales Ratio ($,bil.) (US) . Caremark Rx (US) Expedia Autozone (US) Hennes & Mauritz (Swe.) Next (UK) Bed, Bath & Beyond (US) Woolworth (Australia) Gap (US) TJX (US) Inditex (Spain) Wal-Mart (US) Radio Shack Family Dollar Stores Best Buy (US) Toys-R-Us . Penny (US) Federated Dept. Stores (US) J. Sainsbury (UK) Ito-Yokado (Japan) Ahold Safeway plc (UK) Pinault-Printemps -Redoute (France) Sears Roebuck (US) Dixons Group (UK) Albertson’s (US) May Department Stores .
