A very interesting interview with Huber Corp. http://www.huber.com/ President & CEO Michael Marberry at the Tuck School of Business http://www.tuck.dartmouth.edu/. He talks about the competition from overseas, the low cost entrants into his market and defensive strategies that he has put in place.
He describes some of the problems with new entrants into his market segments with their low cost “good enough” products. That companies need to focus on these new players as they will and are using their profits in the commodities / standard product space to moving into the specialty products space.
Defending against these new entrants, he talks about establishing barriers (e.g. Intellectual Property, Research & Development, Product Costs, and Total Life Cycle / Use Costs).
Definitely got me thinking about how these new commodity players will also transform the specialty market as they mature.
For the interview please use the following link http://www.youtube.com/watch?v=DpESTFBeAWc
A good 8 min. of eduction.