CO SCI 136 Lecture Notes - Lecture 11: Social Complexity, Cost Leadership, Reverse Engineering
Document Summary
The purpose of this paper is to develop and apply a model that specifies the conditions under which it can, and cannot, be a source of sustained competitive advantage. Traditionally, the focus was on the ability of it to add value to a firm, by reducing costs or differentiating its products or services. However, it is not the same as it being a source of sustained competitive advantage for a firm. Sustained competitive advantage: implementing a strategy that is not simultaneously implemented by many competing firms and where these other firms face significant disadvantages in acquiring the resources necessary to implement the strategy. Temporary competitive advantage: implementing a valuable strategy currently pursued by only few competing firms, where these competing firms do not face significant disadvantages in acquiring the resources necessary to implement this strategy. Competitive parity: implementing a valuable strategy being simultaneously implemented by several competing firms.
