2003
DOI: 10.1108/00251740310468031
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A framework for concentric diversification through sustainable competitive advantage

Abstract: This article investigates the issue of diversification around the core business, namely concentric diversification. There have been many diversification failures reported over the last few decades. Little guidance has been available to firms who plan to diversify in order to grow. The literature relating to competitive advantage, sustainable competitive advantage, and concentric diversification is reviewed. A process is then presented to help managers make sound strategic diversification decisions, thus reduci… Show more

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Cited by 40 publications
(32 citation statements)
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References 21 publications
(48 reference statements)
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“…"A firm is said to have a competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential player" (Clulow et al, 2003). To gain competitive advantage a business strategy of a firm manipulates the various resources over which it has direct control and these resources have the ability to generate competitive advantage (Rijamampianina, 2003). Superior performance outcomes and superiority in production resources reflects competitive advantage (Lau, 2002).…”
Section: Competitive Advantagementioning
confidence: 99%
“…"A firm is said to have a competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential player" (Clulow et al, 2003). To gain competitive advantage a business strategy of a firm manipulates the various resources over which it has direct control and these resources have the ability to generate competitive advantage (Rijamampianina, 2003). Superior performance outcomes and superiority in production resources reflects competitive advantage (Lau, 2002).…”
Section: Competitive Advantagementioning
confidence: 99%
“…It has to be noted that a profit is gained through sales incomes results from customer purchase (Rijamampianina et al, 2003;Thompson et al, 2012).…”
Section: Financementioning
confidence: 99%
“…In other words, they could concentrate on one specific technological field to raise their specialization to enhance their competitive advantages (Rijamampianina et al 2003). However, companies could enter different technological fields to develop new technologies or related knowledge.…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%