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Management article
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Reference no. 80506
Authors: William Hall
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1980
Length: 11 pages

Abstract

A study of 64 U.S. manufacturing companies indicates that achieving the lowest delivered cost and/or highest differentiated position was the most successful corporate strategy in the 1970s. Inflationary pressures and foreign competition had a negative effect on the profitability and sales growth levels of eight basic manufacturing industries. Analysis of various companies within these eight industries reveals that some companies were still highly successful. These companies had clear, long- term objectives. They invested heavily in modern, automated production technologies and in marketing and distributing their products. Diversification was a less effective way of dealing with hostile market forces.

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Abstract

A study of 64 U.S. manufacturing companies indicates that achieving the lowest delivered cost and/or highest differentiated position was the most successful corporate strategy in the 1970s. Inflationary pressures and foreign competition had a negative effect on the profitability and sales growth levels of eight basic manufacturing industries. Analysis of various companies within these eight industries reveals that some companies were still highly successful. These companies had clear, long- term objectives. They invested heavily in modern, automated production technologies and in marketing and distributing their products. Diversification was a less effective way of dealing with hostile market forces.

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