BU415 Chapter 9: BU 415 Chapter 9
Document Summary
Appropriating it-enabled value over time: establishing when and how an it-dependent strategic initiative can be protected. It-dependent strategic initiative: identifiable competitive moves (or projects) designed to lead to sustai(cid:374)ed i(cid:373)p(cid:396)o(cid:448)e(cid:373)e(cid:374)ts i(cid:374) the fi(cid:396)(cid:373)"s (cid:272)o(cid:373)petiti(cid:448)e positio(cid:374) Depends on the use of it to be enacted. Sustainable competitive advantage: ability of a firm to protect its competitive advantage in the face of competition. The stronger the advantage, the higher the resiliency to imitation. How do we know if assets yield a sustainable competitive advantage? (resource based. View: rareness: is the asset in limited supply or difficult to acquire, value: does the asset yield value to the firm/customers, imperfectly imitable: is the asset impossible to imitate, non-substitutable: is the asset without comparable substitutes. Sustainable competitive advantage: response lag: the time it takes competitors to respond aggressively enough to erode competitive advantage. Response lag drivers: characteristics that combine to make replication of the it initiative difficult and costly: barriers to erosion:
