Strategic Management - Nestle - Case Study Example

STRATEGIC MANAGEMENT: NESTLE by Course Professor Institution City and state Date Strategic Management: Nestle Corporation Identification: Nestle Nestle is a global company dealing with food and drink. The company has its headquarters in Switzerland and is one of the biggest food companies in the global market. In 2014, Nestle was ranked to be position 72 in the Fortune Global 500. Nestle has various business units that specialize in specific categories and this paper is going to look at three of the company’s business units which include PetCare, Coffee and Beverages and Chocolate and Confectionary. These business units work with the company’s research and development to guarantee that all the products and services of the company are in line with the needs of global consumers and align to the organization’s objectives. Nestle Purina PetCare Nestle PetCare business unit goes by the brand name of Nestle Purina Petcare, which is a subsidiary of the company that deals with the production and marketing of pet food, treatments, and litter among other pet activities. The corporation under its Nestlé’s Friskies Petcare business established this unit of the business in 2001 through an acquisition of Ralston Purina. According to the official websites, Corey (2010) notes that the unit is specifically dedicated to the pet industry and provides a wide range of products and services for pet owners around the world. Source of Sustainable Competitive Advantage Sustainable competitive advantage is what ensures that a business is able to thrive and make progress. In a market and industry characterized by competition, it is important for a business to have an edge over the competition. The pet care industry operates in a competitive market. For a business to have sustainable competitive advantage, four factors have to be instituted or ensured and they include; valuable resources, rare resources, imperfectly imitable resources and non-substitutable resources. Valuable resources allow the business to improve its effectiveness and productivity. However, various factors such as changes in consumer needs and requirements may make a business’ valuable resource less valuable. Rare resources are those that are not available to the competition. These resources prove difficult to possess or control and as such give the business an edge over the competition. The competition must be unable to imitate or substitute these kinds of resources for them to be termed rare and a source of sustainable competitive advantage. Non-substitutable resources include ones that cannot be replaced by the competition or cannot be similarly produced and in the event they are produced, the competition cannot get the exact value. In essence, these resources are irreplaceable. Nestlé’s Petcare business unit has strong research and development competencies that are the major source of sustainable competitive advantage. Through research and development, the business has managed to establish product lines that are innovative in the pet care industry. For instance, in 2009 the company created a product for cats that acted as an appetizer food. The cat food named Fancy Feat Appetizers works on the pet’s appetite and encourages better feeding habits. The same year, Nestlé’s Purina also introduced a brand of dog food that worked on the animals’ brain function and aids in digestion. Notably, the business has made use of research and development capabilities to make milestones in the pet care industry. Corporation Revenue Centers The top brands that constitute revenue center for Nestle Purina include Purina One, Alpo, Purina, Busy Bone, Baneful, Dog Chow, Deli-Cat, Friskies and Pro Plan among others. Cat Litter is a 1.4-billion-dollar industry in the United states and ten percent of the market share is dominated by Nestlé’s Purina in total sales. The Tidy Cat brand makes the bulk of this market. According to Laflamme (2010), in the cat litter market, Purina has been the leading product with an estimate of 32.6% of the total sales in 2010. Beneful dog food, dog chow, Alpo and Friskies also make the bulk of the most progressive brands within the business and as such contribute significantly to the revenue of the business. Extent of Diversification Indeed, Nestle has been successful in increasing its brand presence in pet food through diversifying to different products, with each of them being specifically tailored to meet unique markets. Related business units refer to business units that are involved in the manufacture of product meant to serve the same target market. On the other hand, a constrained business unit is only limited to serving the needs of a specific clientele. In this regard, Nestle has been in a position to develop a wide range of Purina diets which include Purine Waggin’, Purina Pro Plan, Purina One, and Purina. Other constrained business units include the Friskies, HiPro and Gourmet Gold. External Environment Analysis In conducting an external environment analysis, several factors of the business’ operating environment are to be considered. The operating environment of a business constitutes the industry of operation and the market in which the business is operating in. The factors pertinent to external environment include political, economic, social, technological, and legal aspects. The political aspect of the analysis considers political situations of the countries in which the business unit is operating and how these situations can affect the business. In the case of Nestle Purina; Political Issues dealing with the intellectual property of the recipes they use in production of their pet products are of potential impact to the business unit. This is in addition to the labeling needs and government interventions concerning issues such as product safety and standards of production. Economic factors of concern include the level of skill of the business workforce and issues such as cost of labor which have an economic impact on the business. Efficiency of the production and manufacturing facilities also feature in economic considerations that affect the business unit. Technological innovations in new products affect the progress of the business and decision in approaches used to integrate technology into the different facets of the business. Vital demographics and the attitudes of consumers in integrating technology into pet care are also of concern to Nestle Purina Pet care. Social factors include the impact to the society in which the business operate. Therefore, the business has to support the predominant culture of the country of operation in relation to beliefs related to pet care and pet food. Environmental aspects are related to the business impact to the environment and issues of sustainability. This means that the business needs to consider how their processes affect the environment and their contribution to the welfare of the environment. Legal requirements in the country of operation include compliance to regulations and standards of operation. This would ensure that the business complies with laws that govern industry operations. Legal considerations will help the business to avoid lawsuits and losses. SWOT Analysis A SWOT analysis is an analysis of the business unit in terms of the strengths, weaknesses, opportunity, and threats of the unit. Strengths Nestle Purina Pet care has an all-encompassing brand portfolio in the sense that the business unit manufactures a wide range of pet products under various and several brands with global recognition. Additionally, the company also provides various services to pet and pet owners such as dog and cat litter, training pads for pets and other services. The support of the parent company Nestlé’s is also a strength since the parent company offers this business unit support n its various processes and strategies. The parent company is a leading global corporation with extensive revenue and resources that are channeled into ensuring that Nestle Purina succeeds in the pet care industry and market. Weaknesses Nestle Purina has faced various legal proceedings that have exposed the company to losses. For instance, the class action lawsuit of 2015 that was filed against the business unit in allegations that the company’s Beneful brand of dog food had toxins harmful to pets. Pet owners have also filed other lawsuits against the company. Such lawsuits could have a negative effect on customer confidence despite the outcome of the cases. It also affects brand image negatively. Opportunity Increased spending by consumers on pets globally is an opportunity for Nestle Purina since it can capitalize on the trend. Many pet owners have started spending considerably on the welfare of their pets and as such the trend could be advantageous for an established business in the industry like Nestle Purina. The growth of the global pet food industry and market is also an opportunity for the business. The company can use this opportunity to venture into international markets thus increasing their global market share in the pet care industry. This would help in increasing global sales as well as strengthen brand name. Threat Nestle Purina faces stiff competition from other established companies that deal with pet food, products and services such as Mars. Mars has a stronger presence in the industry with well-known and established products. The rise in labor wages is also a potential threat to the company and the business. In recent years, wages have undergone considerable increase in Europe and in the United States. This may result in an increase of the business’ operating costs and may consequently affect the margins of the business. Merger Acquisition and Downsize One of the key areas that Nestle’s brand of Pet care should seek to focus on is making acquisition of competing brands. Considering the extensive diversification that the company has managed to achieve, then it would be in a position to engage in mergers and acquisitions to create a stronger market presence. Mergers constitute of two or business coming to together to form a common business unit while an acquisition involves a company purchasing most or all of another company’s shares. Over the past five years, Nestle has already managed to make acquisitions such as those of Pollux and Merrick & Castor. Undoubtedly, a continuation of this trend could lead to greater profitability. List of References Laflamme, D.P., Abood, S.K., Fascetti, A.J., Fleeman, L.M., Freeman, L.M., Michel, K.E., Bauer, C., Kemp, B.L., Van Doren, J.R. and Willoughby, K.N., 2008. Pet feeding practices of dog and cat owners in the United States and Australia. Journal of the American Veterinary Medical Association, 232(5), pp.687-694. Babatunde, B.O. and Adebisi, A.O., 2012. Strategic environmental scanning and organization performance in a competitive business environment. Economic Insights-Trends & Challenges, 64(1), pp.24-34. Mohajan, H.K., 2015. Present and Future of Nestlé Bangladesh Limited. American Journal of Food and Nutrition, 3(2), pp.34-43. Laflamme, D.P., Abood, S.K., Fascetti, A.J., Fleeman, L.M., Freeman, L.M., Michel, K.E., Bauer, C., Kemp, B.L., Van Doren, J.R. and Willoughby, K.N., 2008. Pet feeding practices of dog and cat owners in the United States and Australia. Journal of the American Veterinary Medical Association, 232(5), pp.687-694. Corey, P., 2010. Nestlé Purina PetCare Company. Laflamme, D.P., Abood, S.K., Fascetti, A.J., Fleeman, L.M., Freeman, L.M., Michel, K.E., Bauer, C., Kemp, B.L., Van Doren, J.R. and Willoughby, K.N., 2010. Pet feeding practices of dog and cat owners in the United States and Australia. Journal of the American Veterinary Medical Association, 232(5), pp.687-694. Coffee: Nescafe Nestles’ Nescafé is an instant coffee brand that operates under the business unit of its own. The product brand was established in 1938 and has continued to grow and gain global recognition in the coffee industry. It is one of the most recognized brands in the global coffee market and is available in numerous varieties and tailored to suit the different tastes of consumers (James, 2003). Sources of Sustainable Competitive Advantage Nescafe as a business unit relies heavily on good marketing strategies as a source of competitive advantage. According to Cherry (2011), the business has instituted some of the most globally progressive marketing approaches that have ensured they remain at the top of the coffee industry. Product variation is equally a source of competitive advantage for the business (Need, 2006). Indeed, there are many products under the Nescafé brand that suit and meet consumer needs and are tailored to suit different occasions. For instance, the brand has instant black coffee, instant coffee with cream, coffee with cream and sugar, and ready to drink coffee among other variations. This has ensured the business maintains a competitive edge in the market since they are able to meet the requirements of coffee consumers. Research and development is also a source of competitive advantage in that the company has invested heavily in research and pioneered many products in the coffee market. Golding and Peattie (2005) project that research, development allows the business to always stay ahead in relation to industry progress, and as such, the business continues to remain at the top. Revenue Sources The products that create the greatest revenues for Nescafé as a business unit include their trademark instant black coffee with the brand name Nescafe. Other similarly progressive products of the business unit include Taster’s Choice, which is a separate coffee product under Nescafe that is branded and marketed as superior in quality. Taster’s Choice is also priced highly compared to other coffee products under the coffee business unit and as such is a source of revenue for the business. Nescafe 3in1 is also another revenue source for the business unit. This product is a blend of coffee, cream and sugar and is ready to drink just by adding water. The popularity of the product has ensured that sales are high and revenue from this product makes a large part of the sources of revenue for the business. Nescafe Gold is another product of the business that brings in a high revenue owing to the volume of sales around the world. The product is a premium blend of coffee that is highly priced and valued in the coffee market. Diversification The Nescafe coffee business unit is diversified to include a range of coffee products under the Nescafe brand name. The products include instant coffee, blended coffee and enriched coffee among others. The diversification in terms of products has enabled the business to meet consumer needs in the coffee industry and still remain in the leading position of the coffee market. In diversification, all the products under the Nescafe brand are related in the sense that they are all based on coffee. External Environment Analysis The external environment analysis of the coffee business unit of the corporation entails factors that affect the external environment of the business operation. These factors include the political aspects that may affect the business in the areas of operation, economic, social, technological, legal and environmental factors. The operating environment of a business can be defined as the aspect of the business surrounding. Robinson (2006) notes the operating environment is therefore the set of conditions that affect the functionality of the business such as political conditions, technological or legal. The business is in the coffee industry and as such is subject various political factors that may influence operation. These include the government attitudes and policies in the countries of operation since Nescafe is a global business unit with operations in various countries. Trade relations, export of coffee and the politics of coffee farming and production are some of the political factors that affect Nescafe in the coffee industry. The key economic factor that affects Nescafe in the coffee industry is the spending capacity of consumers in particular regions. Stampfl and Prügl (2011) observe that in countries where consumers have a higher spending power, demand for the product of the business is higher compared to the demand in regions that have low spending power. Another economic factor is the exchange rates in the global market as this affects the business in terms of pricing strategy and approaches. On the sociological front, the effect of coffee consumption on health and the attitude of consumers in various regions has the potential to influence the business (Hatch and Dyer, 2009). In some regions, coffee consumption is associated with higher risk of diseases and is a health concern. Other sociological factors include attitudes that attribute coffee consumption to migraines, sleep deprivation and increased risk of cancer among others. Such social attitudes have the potential to impact on the sales of the company products. The attitudes of different cultures as related to coffee consumption affect sales negatively or positively and have to be evaluated. In terms of technology, the constant development of technology in relation to coffee including advanced brewing techniques influence the business and the industry. Improved brewing techniques that are more efficient have the potential of benefitting the business by enabling them to realize higher revenues since it makes production and manufacturing easier. Technological advancement also allows Nescafe to brew better coffee, produce higher quality coffee products and establish varieties into the market. This helps in boosting the sales of the business. Legal factors that affect Nescafe include lawsuits. For instance, in 2005, the business was involved in a lawsuit that saw Nescafe paying over fifteen million dollars to a complainant for wrongful use of his image. The company had used Russel Christoff’s image on their brand Taster’s Choice without permission for a period of five years. In 2003, Nescafe was sued for using a song in their advertisement without obtaining permission. Such lawsuits and legal complications have the potential of affecting the business negatively and resulting in negative publicity. Environmental factors that affect Nescafe are based on the environmental aspects of coffee farming and harvesting. As an agricultural product, coffee is subject to issues such as drought, poor yield, rains among others. These affect the quality of the coffee that Nescafe acquires which means the business faces challenges in getting the best produce for their products. Additionally, Nescafe as a manufacturing and production industry faces environmental issues that have to do with sustainability and development. SWOT Analysis A SWOT analysis of Nescafe is an analysis that looks at the overall factors that affect the business negatively or positively and also offers opportunities for progress. Strengths According to Dehning and Stratopoulos (2008), innovation is one of the key strengths of the business. Nescafe pioneered instant coffee in the coffee industry and this has ensured that the business continues to be a leading and trusted company when it comes to instant coffee. In addition to this, the business is also innovative and has established some of the most progressive coffee practices and processes in the industry including the blending of coffee, the coffee vending machine and their initiative of involving consumers in their strategies. Additionally, Sweney (2004) notes that Nestle coffee has managed to penetrate other markets and introduce the consumption of coffee into these markets successfully. For instance, Nescafe was able to penetrate into the Indian market successfully yet this market was predominantly a tea consumption market. Strong channels of distribution and good marketing strategies are also strengths of the business. In this way, the products of the business are easily available to consumers since they are distributed efficiently and effectively. Marketing campaigns have ensured that Nescafe is a household name in most regions of the world thus strengthening brand image as associations. Weakness The health campaigns that laud coffee as a health hazard has made some consumers to avoid coffee consumption, which affects the sales of the business. Low usage in regions that prefers other beverages such as tea and cocoa is a major weakness of the business. Lack of highlighting the health benefits of coffee and their products is also a weakness for the business Marketing strategies and promotions do not clearly indicate the various products of Nescafe and instead focus on Nescafe as a single brand. Opportunities Nescafe can benefit from establishing marketing strategies that are geared towards showcasing the health benefits of coffee consumption (Mithil and Islam, 2014). The business can also direct focus into rural markets with extensive marketing and advertising campaigns that would help increase market share in the coffee industry. Increase Nescafe outlets and coffee shops in order to meet the lifestyle requirements of coffee consumers. Threats Stiff competition from other beverages such as tea and cocoa threatens the progress of the company’s global coffee business. Competition from other drinks that are more health conscious may have a negative effect on consumer attitudes towards coffee (Klöpping, 2011). Merger, Acquisition and Downsize Nescafe may benefit from merging with leading global players in the coffee industry such as Starbucks. This would be a progressive move since it will be the joining of two global brands in the coffee industry. It would help the business to acquire a larger market share, a bigger customer base and strengthen the brand on top of boosting sales. List of References Cherry, K., 2011. Nescafé. A Marketing analysis. Dehning, B. and Stratopoulos, T., 2008. Determinants of a sustainable competitive advantage due to an IT-enabled strategy. The Journal of Strategic Information Systems, 12(1), pp.7-28. Golding, K. and Peattie, K., 2005. In search of a golden blend: Perspectives on the marketing of fair trade coffee. Sustainable Development, 13(3), pp.154-165. Hatch, N.W. and Dyer, J.H., 2009. Human capital and learning as a source of sustainable competitive advantage. Strategic management journal, 25(12), pp.1155-1178. James, P., 2003. What is life like on planet Nescafe? Arena Magazine (Fitzroy, Vic), (5), p.30. Klöpping, L., 2011. Nestlé-A Global Company Comes Under Fire. Mithil, M. and Islam, R., 2014. How to create a self-sustaining business model for promoting NESCAFE? Need, W.C.D.H.P., 2006. Human resource management: Gaining a competitive advantage. Robinson, C., 2006. Asian culture: The marketing consequences. Journal of the Market Research Society, 38(1), pp.55-63. Stampfl, G. and Prügl, R., 2011. Business models in context: conceptualizing the environment of business models. In Academy of Management Annual Meeting. Sweney, M., 2004. Nescafe plots entry into fair trade coffee market. Marketing, 6. Nestle Waters Nestle Waters is the Corporation’s bottled water division that operates as an independent business unit. The unit employs an estimate of over thirty thousand employees and has sixty-four brands under its umbrella. Nestle Waters is the largest bottled water brand in the global market with recognizable brands such as Nestle Pure Life, Acqua Panna and Vittel among many others. Nestle Waters was founded in 1992 and is in the beverage industry. The business unit operates in the global market and has a leading share in the bottled water market. Sources of Sustainable Competitive Advantage Innovation is one of the sources for sustainable competitive advantage. The business has over 24 years of research and development through which they have been able to create brands that are superior in the bottled water industry. Rouse and Daellenbach (2004) note that any business heavily invested in research and development ensures innovate products that meet changing consumer needs in this case the bottled water industry. Brand strength and recognition is also a source of sustainable competitive advantage for the business. Nestle Waters has taken the time and invested in building a powerful brand that is hard for competitors to imitate or compete with. The brand the business has created and the various products under the business are invaluable and offer he business an advantage over the competition in the market. The strength of the brand also ensures that the products are preferred by consumers over other products in the market (David and David, 2016). Product differentiation is also a source of competitive advantage. Nestle waters has various products that are diversified and therefore are able to meet the different needs of the customers in the market. The business has bottled water brands that are designed to cater to the sophisticated clientele as well as cheaper brands that are more affordable. The business is therefore able to meet the requirements of all the different consumers which means that they have captured the bottled water market in its entirety which, as Reed and DeFillippi (2009) observes leaves little room for competition. Corporation Revenue Centers Revenue centers of a corporation are those products or services that create the largest revenue for the business. These may include the products with the highest sales and products that are more preferred by consumers in the market. The brands that offer the highest revenue for Nestle waters include Vittel and Perrier whose sales increased by over 5% in 2015. The two brands have continued to have a strong global performance in the market. Aquarel is also a key player that brings in considerable revenue owing to its popularity in the bottled water industry. The product is a natural spring water that targets the average consumer. Its fair pricing has enabled it to be a preferred product among consumers worldwide. Nestle Pure Life also constitutes a great revenue center for the business. The product’s popularity ensures that it is fast moving and rakes in high sales in terms of volume. Other brands that bring in revenue for the business include San Pelegrino, Orzaka, Vittel, and Perrier. Corporation’s Diversification Nestle Waters is highly diversified and does not operate under a constrained environment. In determining the extend of the business diversification, it is important to establish what diversification entails. Mueller (2003) explains that diversification refers to the strategy that a business may adopt in efforts directed at entering new markets or industries. Diversification of a business is based on the business’ attempts at increasing its market share and revenues in the process of growth and sustainability. It therefore includes strategies such as branching out into fresh opportunities. In diversification, there are related verses unrelated strategies. Related strategies are those that are connected to the current business while unrelated strategies include strategies that venture into new territory or market or industry. In Nestles Waters case, the business is diversified and includes both related and unrelated strategies of diversification. The business has a variety of bottled water brands. These brands include purified water, sparkling water, spring water and mineral water. These are related strategies of diversification considering the fact that all these products and brands are centered on water. Nestle Waters also has a variety of tea brands that include iced teas in different variations. The tea brands have diet tea options, regular teas and organic teas. Such brands include popular global brands like Nestea, Sweetleaf, and Tradewinds. This can be categorized as unrelated strategy in diversification since the business has diversified into a new industry of tea, which is not related to bottled water. External Environment Analysis External environment analysis of Nestle Waters covers the various dynamics that have the potential of having an impact on the business. The operating environment of a business is comprised of certain significant aspects that have to be considered since they are important to the growth and health of the business. The operating environment constitutes the surrounding aspects in operation of the business (Gillespie, 2007). These aspects include political, environmental, social, economic, technological and legal considerations. Analyzing a business through these aspects enables a better understanding of the operating environment and helps in decision-making and implementation of strategies. The political consideration that Nestle Waters may encounter include the policies of the countries in which they operate. Since Nestle Waters has operations in various countries, they have to ensure that they align to the government policies as related to aspects such as setting up factories, sourcing or water and distribution in addition to others. The business also has to comply with government regulations related to taxes, import and export and labor laws. Economically, exchange rates and the variations that exist in different countries also affect the business since it has an impact on strategies such as setting of prices and sales. Bourgeois (2000) also notes that operation costs also factor into economic factors that have potential impact on the business. The difference in labor cost, sourcing, manufacturing and branding in different countries has the potential to affect Nestle Waters. Social factors in the external environment of the business include the attitudes of consumers from different cultures towards the consumption of bottled water. Consumers from certain regions may associate bottled water with health risks. On the technological front, the business has to consider technological advancements in packaging designs, processes of water purification and branding among others. With the advancement of technology, the business can take advantage by using technology to offer more innovative products. For instance, the use of technology to design more appealing bottles, branding and even the processes that the water goes through before it becomes bottled. Environmentally, factors of sustainability such as recycling of water, purification and pollution are of potential impact. Nestles Waters has to ensure that their products adhere to stipulated global standards of water preservation since water is a major natural resource under threat in the current world. Legal issues include complying with the legal requirements of the various countries of operations. They also cover laws that govern safe drinking water quality, standards of production and laws requiring information on the labels of the bottle. SWOT Analysis SWOT stands for strength, weaknesses, opportunity, and threat. Conducting a SWOT analysis affords one a better look at the various aspects that contribute to the well-being of the business and helps in establishing better strategies for more growth and higher revenues (Black and Boal, 2007). Strengths Being a market leader in the bottled water industry is strength for the business. Therefore, the business is in the leading position in the industry and commands a large portion of the industry market. This contributes to higher revenue through sales and also strengthens the brand name and image. Nestles Waters has a well-established and developed quality process that gives it a competitive advantage and makes the business more profitable. By having processes that guarantee quality, the business is able to gain the trust of the consumers as well meet the consumer needs. Weaknesses Some of the products of the business are more expensive compared to the ones being offered by the competition. This means that consumers may prefer to purchase products of the competition especially when price is a factor. Substitute products such as tap water and home treated water are a weak point that affect the sales of the business products. Cartwright and Cooper (2012) explain that substitute products are the central weakness in many industries. Opportunities Nestles Waters can buy out competition by acquiring smaller brands and integrating them into their portfolio. This would ensure they maintain their position in the industry as well as guarantee they have a larger share of the market. Threats The development of store brands is a potential risk to the business as store brands are cheaper and therefore more affordable. High competition level in the industry means that Nestles Waters has to continually strive to create better products if they are to stay at the top. New entrants into the market also pose great competition to the business. Merger, Acquisition, and Downsize Nestles Waters need to consider acquisition as a future strategic move for the business. The business should consider acquiring smaller companies especially in emerging markets such the market in developing countries. This would enable the business to establish a presence in these markets as well as expand their portfolio (Salter and Weinhold, 2009). Marks and Mirvis (2010) advance that acquisitions of such companies in developing countries enables a company such as Nestles Waters to become a recognized brand with significant global reach. List of References Black, J.A. and Boal, K.B., 2007. Strategic resources: Traits, configurations and paths to sustainable competitive advantage. Strategic management journal, 15(S2), pp.131-148. Bourgeois, L.J., 2000. Strategy and environment: A conceptual integration. Academy of management Review, 5(1), pp.25-39. Cartwright, S. and Cooper, C.L., 2012. Managing Mergers Acquisitions and Strategic Alliances. Routledge. David, F. and David, F.R., 2016. Strategic Management: A Competitive Advantage Approach, Concepts and Cases. Gillespie, A., 2007. PESTEL analysis of the macro-environment. Foundations of Economics, Oxford University Press, USA. Marks, M.L. and Mirvis, P.H., 2010. Joining forces: Making one plus one equal three in mergers, acquisitions, and alliances. John Wiley & Sons. Mueller, D., 2003. The corporation: Growth, diversification and mergers. Routledge. Reed, R. and DeFillippi, R.J., 2009. Causal ambiguity, barriers to imitation, and sustainable competitive advantage. Academy of management review, 15(1), pp.88-102. Rouse, M.J. and Daellenbach, U.S., 2004. Rethinking research methods for the resource‐based perspective: isolating sources of sustainable competitive advantage. Strategic management journal, 20(5), pp.487-494. Salter, M.S. and Weinhold, W.A., 2009. Diversification through acquisition: Strategies for creating economic value. Free Pr. Read More