Evaluate different conditions that allow a firm to sustain a competitive advantage. ¦ Several…

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Evaluate different conditions that allow a firm to sustain a competitive advantage.

■ Several conditions make it costly for competitors to imitate the resources, capabilities, or competencies that underlie a firm’s competitive advantage: (1) better expectations of future resource value, (2) path dependence, (3) causal ambiguity, (4) social complexity, and (5) intellectual property (IP) protection.

■ These barriers to imitation are isolating mechanisms because they prevent rivals from competing away the advantage a firm may enjoy.

 

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