Strategy Dynamics through a Demand-Based Lens: The evolution of market boundaries, resource rents, and competitive positions
نویسندگان
چکیده
We adapt formal models of competition with differentiated products to address the evolution of market boundaries, resource rents, and competitive positions. Our model captures the central strategy insight that competitive interactions are governed by superior value creation and competitive advantage. More importantly, it shows how the interplay between improving technologies and consumers’ valuation of the resulting performance improvements affects which market segments new technologies are able to enter, how the rents from different types of resources change over time, and whether or not markets are segmented according to classic generic strategies. ∗Both authors at Insead. We thank Chan Kim, Bruce Kogut, Mary O’Sullivan, Subi Rangan and Louis Thomas for helpful comments.
منابع مشابه
Bidding Strategy on Demand Side Using Eligibility Traces Algorithm
Restructuring in the power industry is followed by splitting different parts and creating a competition between purchasing and selling sections. As a consequence, through an active participation in the energy market, the service provider companies and large consumers create a context for overcoming the problems resulted from lack of demand side participation in the market. The most prominent ch...
متن کاملANZMAC 2006 Conference
To choose a competitive position, firms must have a clear understanding of 1) the specific market deliverables required to meet consumer expectations of the position, and 2) the corresponding assets and capabilities required. Only then can the firm assess the fit of the position relative to their ability to achieve it in the market. This paper proposes a tool to aid organisations’ abilities to ...
متن کاملDesigning a Blue Ocean Strategy Model among Market Leaders in the Food Industry Using the Delphi Method
Blue Ocean Strategy with Innovation in the field of strategy offers a set of specific tools and approaches to create value. Therefore, it is important to apply this strategy among market leaders who use a value creation strategy to maintain and maintain competitive advantage. The purpose of this paper is to design a Blue Ocean strategy model among market leaders in the food industry. This study...
متن کاملStrategic Groups & the Resource Based View: Natural Complements Enhancing Our Understanding of the Competitive Process
Strategic groups and the resource based view of the firm are frequently perceived as opposite positions, but both are in fact complements. The resource based view informs strategic group analysis through offering a richer finer grained perspective on strategy and an additional lens for group interpretation. The firm’s product portfolio forms a common link between these two positions, a link rep...
متن کاملFuture of the World Oil Market with an Expanding Role of Shale Oil: A System Dynamics Approach
In this paper, we develop a dynamic system model to predict the effects of shale oil production on demand and supply of oil. We study the interaction between demand and supply of OPEC and non-OPEC member countries and supply of shale oil, oil price, growth of the global economy, development of new oil reserves and alternative energies. In our model, OPEC acts passively and covers the market d...
متن کامل