Manufacturer Service-Oriented Strategy: A New Source of Competitive Advantage in Homogenous Industrial Markets

Manufacturer Service-Oriented Strategy: A New Source of Competitive Advantage in Homogenous Industrial Markets

Copyright: © 2021 |Pages: 17
DOI: 10.4018/978-1-7998-6874-3.ch004
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Abstract

This chapter develops a new hybrid manufacturing service-based marketing strategy for manufacturers evolving in a homogenous market. First, by using the Porter's value chain model, it will outline how manufacturers develop their competitive advantages in a normal context and then run the same theoretical analysis in the context of a homogenous market where it is difficult for manufacturers to create a difference. In addition, a qualitative research in the form of semi-conducted interviews with factory executives will confirm the homogeneity of strategies among competitors and outline the importance of developing new strategic directions. The conclusion will show that in order to create competitive advantages without using too many resources, marketing, service management, and technology could work together and lead manufacturers to adopt a more service-based marketing management orientation.
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Source Of Competitive Advantage In Classic Manufacturing

Before considering the effect of such a homogenous market on the conception of competitive advantages, it is important to first comprehend simply how price advantage could be achieved in manufacturing markets. In order to do so, a value chain’s model (Porter, 1985) is presented in figure 1. Through a conceptual analysis, the contribution from all five primary activities and four supporting activities on creating competitive advantage will be performed and analyzed theoretically. Then, this exploration will be put in the context of a homogenous market where manufacturers should have difficulties creating differences between each other.

Figure 1.

Porter generic value chain (Porter, 1985)

978-1-7998-6874-3.ch004.f01

In manufacturing markets:

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