This chapter looks at competitive advantage at the product/market level. To an economist competitive advantage is a temporary state of disequilibrium between competing firms. It is therefore something that is created either by changes in the market or changes in one of the competing firms. At the corporate level entrepreneurial architecture is valuable because it can both create change internally through innovation and create an ability to react to external change in the market. It is able to create and recreate competitive advantage, thereby making it sustainable and difficult to copy. However, even as an entrepreneurial firm might move from one new product/market configuration to another, it leaves behind it an existing market in which it must compete. For many large firms this involves a multi-business form of organization. And in competing within existing markets the factors underpinning competitive advantage need to be understood, even if they are ultimately copiable, because competitive advantage in existing markets can be extended.
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- Creating Competitive Advantage in Mature Markets
- Macmillan Education UK
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- Chapter 10