Red Ocean Depth Maneuvers: Thriving in Mature Markets

Roberto S. Vassolo (), Natalia Weisz () and Benjamin Laker ()
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Roberto S. Vassolo: Universidad Austral
Natalia Weisz: Universidad Austral
Benjamin Laker: University of Reading

Chapter Chapter 6 in Advanced Strategic Management, 2024, pp 83-96 from Springer

Abstract: Abstract In this chapter, we delve into the challenges and strategies for business units competing in mature industries where market growth has plateaued, innovations are incremental, and competitive positions are well established. We emphasize the importance of understanding the competitive landscape and implementing appropriate generic strategies, assessing the attractiveness of these spaces, and finding a sustainable position within them. We use examples from various industries to differentiate between companies in terms of their strategic positioning and the implications of such positioning on their competitive rivalry. Furthermore, we introduce a traditional perspective on industry attractiveness through Michael Porter’s Five Forces analysis. This evaluates the competitive landscape in terms of the threat posed by new entrants, supplier and buyer power, the threat of substitutes, and the intensity of rivalry among existing competitors. We then shift the focus from a broad industry view to the attractiveness of strategic groups. Finally, we discuss the complexities of changing positions during the maturity stage.

Keywords: Generic strategies; Business positioning; Competitive rivalry; 5-forces framework; Strategic groups; Segmentation and niche strategies; Outside-in approach (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-57419-1_6

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DOI: 10.1007/978-3-031-57419-1_6

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