According to this theory, there are three sources of "permanent" competitive advantage. These are summarized below with the main methods of implementation.
First-mover
Patents
Government licenses
Location lockup
Channel access limited
Supply access limited
Reputation
Economies of scale
Specialization
Spreading of fixed costs
Purchase discounts
Vertical integration
Experience benefits
Employee learning
Product redesign
Process improvement
Source: Pitts, R. A. & Lei, D. (1996). Strategic management: Building and sustaining competitive advantage. St. Paul, MN: West Publishing.
© Copyright 2000 Raymond S. Kulzick. All rights reserved. 000717.
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