Transcription of CHAPTER 7 COMPETITIVE ADVANTAGE IN TECHNOLOGY …
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CHAPTER 7 COMPETITIVE ADVANTAGE IN TECHNOLOGY …
CHAPTER 7 COMPETITIVE ADVANTAGE INTECHNOLOGY INTENSIVEINDUSTRIESF rank T. RothaermelABSTRACTThis CHAPTER introduces the reader to the meaning of competitiveadvantage and posits that a firm s strategy is defined as the managers theory about how to gain and sustain COMPETITIVE ADVANTAGE . The authordemonstrates how a firm creates its COMPETITIVE ADVANTAGE by creatingmore economic value than its rivals, and explains that profitabilitydepends upon value, price, and costs. The relationship among these factorsis explored in the context of high- TECHNOLOGY consumer goods-laptopcomputers and cars.
The chapter then describes the strategic group model and ... given the way it enhances your productivity. If you would have been willing to pay, let’s say, $8,000 for your laptop, but paid only $1,200 for it, you actually captured value in the amount of $6,800. This amount is the
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