Mivar

Mivar is an Italian company that pursues a focus strategy on cost. The firm produces TVs only for the Italian market, where it is the first company for market share (measured in volume). Despite the presence of large multinationals (Sony, Thomsoon, Philips, etc.), Mivar has been able to gain the leading position thanks to the cost advantage it has build over time. The case illustrates clearly that the company has been able to gain its competitive advantage through a narrow definition of the competitive scope and a persistent search for cost reduction in all the activities of the value chain. It also stimulates a discussion on the threats involved in pursuing a generic competitive strategy. The case answers such questions as “How can the competitive scope of a firm influence its competitive advantage?”, “How do various company activities contribute to creating a competitive advantage?”, “How can drivers affect the competitive advantage?”, “What threats can erode the competitive advantage?”, “How to assess and react to environmental threats?”