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Red Ocean Depth Maneuvers: Thriving in Mature Markets

In: Advanced Strategic Management

Author

Listed:
  • Roberto S. Vassolo

    (Universidad Austral)

  • Natalia Weisz

    (Universidad Austral)

  • Benjamin Laker

    (University of Reading)

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.

Suggested Citation

  • Roberto S. Vassolo & Natalia Weisz & Benjamin Laker, 2024. "Red Ocean Depth Maneuvers: Thriving in Mature Markets," Springer Books, in: Advanced Strategic Management, chapter 0, pages 83-96, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-57419-1_6
    DOI: 10.1007/978-3-031-57419-1_6
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