The Impact of competitors imitating each other

A New York times article (January 25, 2011, B1) describes a decision by Sealy to start using a technology prominently advertised by its competitor, Simmons. The technology is a closed coil system used by Simmons, as against the traditional Sealy approach of using coils laced by wire.   Is adoption of a technology, long pioneered by a competitor, a good competitive decision  ? Will Sealy diminish Simmons’s advertising impact or concede that they (Simmons) had a better technology to begin with ? Are suppliers deriving this commonality of product designs ? This article reminds me of a decision a few years ago when Pratt and Whitney (a GE competitor in the jet engine market) decided to offer aftermarket components for GE engines, albeit with a different supply chain implication. But that is another story.

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , . Bookmark the permalink.

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