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Can competitive advantage be achieved through a single force? : Reviewing market based factors leading to a competitive advantage.

Ural, O. (2016) Can competitive advantage be achieved through a single force? : Reviewing market based factors leading to a competitive advantage.

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Abstract:This paper provides an overview to theoretical and practical findings on the source of competitive advantage. More specifically, the study focuses on a single force which is barriers to entry, that is believed to be strong enough on it’s own to deliver competitive advantages. The findings are based on ten case study analyses, showing that economies of scale, customer captivity and proprietary technology are a strong source of competitive advantage that eventually lead to high barriers of entry. Our findings show that a combination of economies of scale and customer captivity will deliver the most competitive advantage in a market based view. Proprietary technology alone is not strong enough as a competitive factor as it can be easily imitated by others. Therefore, the study proposes companies to focus on economies of scale and customer captivity and try to position themselves in tightly drawn markets rather than big contested ones, meaning that they should position themselves in markets with higher barriers to entry.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/69653
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