Professional Documents
Culture Documents
Lecture 07 Technology and Competitive Advantage - Tagged
Lecture 07 Technology and Competitive Advantage - Tagged
Lecture 7
Technology and Competitive Advantage
https://library.ku.ac.ke/wp-content/downloads/2011/08/Bookboon/Strategy/studying-strat
egy.pdf
Class Exercise 1
Read the following article which focuses on cost leadership
https://mktoolboxsuite.com/cost-leadership-examples/
Learning:
• Learning is primarily organizational in nature (see
Lecture 4), and has few direct technological
implications.
Economies of Scale:
• Firms having the greatest production and sales volume
can build a cost advantage using technology.
Innovation:
• Small firms can nullify cost reductions attributable to
economies of LB5207
scale through the use of technology.
Managing Entrepreneurial Enterprises
Class Exercise 2
Read the following article which focusses on differentiation strategy
https://www.pricingsolutions.com/pricing-blog/6-companies-that-cleverly-use-differentiati
on-strategies-gain-competitive-advantage/
Imitability
• The true extent of a firm’s competitive advantage, due to
its technology, and the extent to which it is protected from
imitation, by other competitors.
Value:
• The perception by customers, of firm’s product or
service, resulting from the utilization of the technology.
Competitive Dynamics:
Scale Change:
• As firm and industry scale increase, new product and process
technologies may become feasible.
Learning:
• Firms learn about product design and how to perform various value
activities over time, with resulting changes in the technology employed.
Technology Diffusion:
• Diffusion of technology occurs continually, though at different rates
depending on the industry.
Sources of Technology:
• Technological change is more predictable when
industry-specific technologies are dominant, and the
impact of technologies from outside the industry is
small.
LB5207 Managing Entrepreneurial Enterprises
Challenges to Sustaining Firm’s
Technology Lead
Technological Limits:
• The technological limits in the different technologies in
the value chain, will affect the path of technological
change.
Substitution Logic: