Analysis of Dynamics Competitiveness by Using Strategic Groups Maps: Case of Furniture Industry

Analysis of Dynamics Competitiveness by Using Strategic Groups Maps: Case of Furniture Industry

Hamed Aboutorab (Faculty of Management, University of Tehran, Tehran, Iran), Alireza Aslani (Faculty of New Sciences and Technologies, University of Tehran, Tehran, Iran) and Mohsen Nazari (Faculty of Management, University of Tehran, Tehran, Iran)
Copyright: © 2018 |Pages: 15
DOI: 10.4018/IJBAN.2018070104

Abstract

This chapter describes how in today's competitive world, the survival of businesses is highly dependent on satisfying the customers and responding to their demands. The furniture industry is one of the markets that consists high level of competition and customers in different groups. The industry has a rapid growth by improving the economic conditions and quality of life in the world. However, the capability and competitiveness of suppliers and retailers for domestic and imported products are a big challenge. This brings the importance of the strategic analysis approach to the industry. The aim of this article is to implement strategic group maps to understand the dynamics of the furniture market in a selected case study. The used method is the first in the furniture industry and the market analysis is based on the both suppliers/retailers and customers' viewpoints. The outputs show the furniture industry can be categorized in the five groups with specific required demand and strategy in each group.
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Literature Review

The challenge of competitiveness is one of the main concerns of business and activity in today's dynamic and environment (Dastaviz, 2016). Having appropriate strategy to enhance the position of business competitiveness is one of the today needs (Wan, Lähtinen, & Toppinen, 2015). According to competitive advantage model presented by Porter (1985), a competitive strategy takes offensive or defensive measures to create a suitable position in the industry to be successful in the competition of its business environment and thus to make faster the return on investment and to raise the rate of return (Jitpaiboon, Gu, & Patel, 2015). According to Porter's model, there are two basic competitive advantages, namely cost leadership and differentiation in products and services, which the third dimension of focus can be added to it by a closer consideration.

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