Chapter 2: Firm Performance and Competitive Advantage

Chapter 2:  Firm Performance and Competitive Advantage

In the 1990's, Dupont took action to refocus it's resources on their core competency business segments.  This is the root for a strategy to building upon competitive advantage in the chemical industry.  This initiative meant building and investing in it's highest margin business that best fit their strategic goals, while at the same time divesting from those ventures that did not best fit the companies long term intentions.  An example of this would be the 1993 transaction between Dupont and ICI in which Dupont acquired the nylon business segment of ICI and ICI acquired the acrylics business from Dupont.  Dupont did not make changes to it's mission, but concentrated its business on what it did best.

Though competitive advantage was gained by refocusing resources on core competencies, it does not mean that Dupont lessened it's focus on growth and innovation.  In 1994 a joint venture was forged with Conoco which began producing oil from the Russian Arctic.  This was the first major oil field brought into production by a Russian/Western entity since the fall of the Soviet Union.