A COMPARISON OF SURVIVORS AND NON-SURVIVORS UNDER CONDITIONS OF LARGE-SCALE WITHDRAWAL IN THE U.S. COLOR TELEVISION SET INDUSTRY

GARY E WILLARD, Purdue University

Abstract

This research compares survivors and non-survivors of what has popularly been termed an industry shake-out to determine how and along what dimensions these two classes of businesses differ. Two types of strategy variables are considered. The first type, called "corporate level", compares the relationships between the parent corporations and the subsidiaries in the Color Television Set Industry. How the subsidiaries compete in the chosen industry is compared by the second type, "business level" or competitive strategy, variables. Eighteen hypotheses are proposed and tested. The results of these tests disclose a profile of the 'typical' survivor which differs markedly from the 'typical' non-survivor. Broadly speaking, the U.S. owned manufacturers of color television sets fall into three groups: (1) Those that had a clear objective, discernable strategy, and entered the industry with critical skills gained in related endeavors. With but one exception, all survived. (2) Those that possessed sufficient resources but lacked a clear objective, discernable strategy or critical skills at the time of entry. Without exception, none survived. (3) Those that lacked (and for various reasons were unable to obtain) sufficient resources to compete in the "mainstream" of the chosen industry. With but two exceptions, none survived. The study indicates at least four different strategy types pursued by survivors. Strategies of non-survivors were not as well defined or as easily classified and implementation was frequently inconsistent. The results are consistent with previous research regarding the observed relationship between product quality and performance, relatedness and performance, and between strategic importance and performance. The results do not support the market power-performance hypothesis.

Degree

Ph.D.

Subject Area

Management

COinS