Foresight as a source of competitive advantage in the global polyolefin industry

Abstract

Porter's framework envisages the structural positioning of a firm within an industry as a source of competitive advantage. Each firm competes not only with its rivals but also with customers and suppliers to maintain its competitive advantage. In view of the nature of the industry, polyolefin manufacturers need to collaborate with raw material suppliers, technology providers and processors who convert the resin into end products. The firms need to form alliances and networks within the industry. This article describes the nature of the polyolefin industry. The drivers of competition and business as well as technology strategies adopted by various firms to enhance their competitiveness have been analysed. With four case studies, it has been shown that firms which have the foresight to develop competitive technologies and integrate the same with business strategies can alone hope to survive in the increasingly competitive landscape.