ABSTRACT

Firms that adopted one or the other of the innovations saw the nature of competition shift only as other firms in the industry changed their production philosophy. The competitive environment of mass producers supports the generic strategies of cost leadership and product differentiation. Lean product development can be contrasted to conventional product development, in which the development process is not the responsibility of a single team but is distributed across multiple departments. Three product-related characteristics, known as the survival triplet, play a critical role in the success of firms that have adopted the confrontation strategy. The capabilities of the firm determine the maximum feasible values for quality and functionality. Quality is managed via the firm's total quality management program. Firms that have successfully developed sustainable competitive advantages in the old competitive environment may be tempted to make mistakes.