Competitive advantage: the challenge for small and medium businesses in the footwear industry

Along with the economic reforms that took place in the United Kingdom and Mexico in the 1980s, the footwear industry experienced considerable re-structuring on the international level, redefining the competitive basis for many footwear-producing countries. The objective of this article is to analyze the development of competitive advantage in small and medium businesses in the British and Mexican footwear industry. Using a historic approach, businesses that were created and/or survived the period from 1979 to 1999 were studied. Ten case studies were developed; data was compiled using interviews and classified according to the interactions and changes occurred in the roles of the businessman, company resources or interactions with support institutions. Results indicated that a company's basic resources were the foundation for developing the minimum competitive advantage needed for survival. Once this stage had been surpassed, improvement of competitive position occurred due to the adoption of complementary strategies. These results suggested that smaller companies can develop competitive advantage in a particular manner, different from larger companies.