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2.
Truly sustained low-cost advantages may push rivals into other areas.
New Entrants competing on price must face an entrenched cost leader without the experience to replicate every cost advantage. Low-cost advantages should lessen the attractiveness of substitute products.
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Horizontal integration.
International expansion
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Focus on segment within industry that offer a chance for higher growth. Emphasize product innovation and quality improvement. Emphasize production and distribution efficiency. Gradually harvest the business.
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Turnaround or retrenchment Divestiture Liquidation Concentrated growth Market development Product development Innovation
II III
I IV
Maximize Strengths
I IV
1. Concentric diversification 2. Conglomerate diversification 3. Joint venture
II III