STRATEGY 411 Lecture Notes - Lecture 9: Lidl, Aldi, Starbucks
Document Summary
Imitation by other firms- can be from pure replication (completely imitates every aspect of the focal firm) to substitution (imitates and sometimes improves) the value proposition but differs on other essential parts. Lidl almost replicated aldi, while blackberry suffered from substitution from the iphone and android. Most imitation falls somewhere between replication and substitution. Imitation is almost unavoidable, since it is often discret and sudden. Dissipation of performance by changes in one of the drivers of performance. Changes may be internal- company culture or in trade offs between parts of the business. Changes may be external- changes in customer demand or consolidation of customers. Dissipation is a more diffuse threat than imitation. 3 channels to sustainability in face of potential imitation- Other firms cannot imitate the competitive advantage- Competitors cannot imitate a competitive advantage when the adva(cid:374)tage is (cid:271)uilt o(cid:374) a sto(cid:272)k of a u(cid:374)i(cid:395)ue (cid:396)esou(cid:396)(cid:272)e o(cid:396) (cid:272)apa(cid:271)ility dis(cid:374)ey.
