PHYSICS 102 Lecture Notes - Lecture 18: Cost Leadership, Reverse Engineering, Market Risk
Document Summary
Mata et al (1995): information technology and sustained competitive advantage: a resource- Firm has a temporary competitive advantage when it is implementing a valuable strategy currently pursued by few competing firms, but where these competing firms do not face significant disadvantages in acquiring the resources necessary to implement this strategy. A firm experiences competitive parity when it is implementing a valuable strategy being simultaneously implemented by several competing firms. A firms is at a competitive disadvantage when it is implementing astrategy that is not valuable, i. e. , a strategy that does not reduce its costs or increase its revenues. The create-capture-keep paradigm: create-capture-keep paradigm: it-based customer switching costs can be a source of sustained competitive. As long as cost to customers of switching suppliers is less than extra value that is being extracted from this relationship by a supplier customer will continue to buy it from that supplier.
