mobility barriers

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mobility barriers

or

isolating mechanisms

economic forces that limit the extent to which a firm's COMPETITIVE ADVANTAGE can be duplicated or neutralized through the activities of other firms.

There are two broad groups of mobility barriers. The first are barriers to imitation, which make it difficult for existing firms in a market or potential market entrants to duplicate the resources that form the basis of a firm's competitive advantage. These impediments include legal restrictions on imitation, such as PATENTS, copyrights, trademarks and licensing; superior access to factor inputs information, distribution channels and customers; ECONOMIES OF SCALE; and the specific know-how, collective wisdom and skills of the firm.

The second group of mobility barriers are early-mover advantages that allow a firm with competitive advantages to increase the magnitude of its advantages relative to competitors and potential market entrants over time. Early-mover advantages include EXPERIENCE-CURVE economies; reputation which reduces buyer uncertainty about product quality; and high buyer-switching costs.

Isolating mechanisms protect a single firm from immediate competitors in much the same way that BARRIERS TO ENTRY protect incumbent firms from potential market entrants. See RESOURCE-BASED THEORY OF THE FIRM, STATEGIC GROUP.

mobility barriers

economic forces that limit the extent to which a firm's COMPETITIVE ADVANTAGE can be duplicated or neutralized through the activities of other firms. Mobility barriers, or isolating mechanisms as they are sometimes referred to, prevent other firms from competing away any ABOVE-NORMAL PROFIT that a firm earns as a result of its competitive advantage.

There are two broad groups of mobility barriers. The first are barriers to imitation, which make it difficult for existing firms in a market or potential market entrants to duplicate the resources that form the basis of a firm's competitive advantage. These impediments include legal restrictions on imitation, such as patents, copyrights, trademarks and licensing; superior access to factor inputs, information, distribution channels and customers; ECONOMIES OF SCALE; and the specific know-how, collective wisdom and skills of the firm.

The second group of mobility barriers are early-mover advantages, whuch allow a firm with competitive advantages to increase the magnitude of its advantages relative to competitors and potential market entrants over time. Early-mover advantages include learning-curve economies; reputation, which reduces buyer uncertainty about product quality; and high buyer-switching costs.

Isolating mechanisms protect a single firm from immediate competitors in much the same way that BARRIERS TO ENTRY protect incumbent firms from potential market entrants. See RESOURCE-BASED THEORY OF THE FIRM, STRATEGIC GROUP.

References in periodicals archive ?
Reproductive behavior of female buntings: Isolating mechanisms in a hybridizing pair of species.
His first rap was about reproductive isolating mechanisms.
We specifically paid attention to three of the most important of these isolating mechanisms in this study, namely intellectual property rights, organizational reputation, and contractual alliances with important external partners, as ex-post impediments to competition in a market.
Rumelt calls such resource characteristics isolating mechanisms that prevent an imitation by competitors and defines them as 'phenomena that limit the ex post equilibration of rents among individual firms' (Rumelt 1984: 567).
The instructor can ask them to analyze whether speciation has occurred in a particular story, and if so, what reproductive isolating mechanisms have evolved; to distinguish Lamarckian versus Darwinian thinking in an author's writing (for example, by analyzing Spiderman's acquisition of powers from a spider bite); to observe how natural selection has led to adaptation and how drift has caused random changes in a given population.
A sampling of topics includes evaluating enterprise integration middleware technologies; improving architectural composability and consumability using communities; isolating mechanisms in COTS-based systems; and reconfiguring workflows of Web services.
When prior choices are retained, despite successful alternatives, they are institutional isolating mechanisms -- preferences for and reluctance to acquire competitors' resources or imitate their strategies (Oliver 1996, 1997).
This ignores the fact that Mayr discussed a variety of other isolating mechanisms besides allopathic speciation.
An explanation for this pattern may lie in the relative strength of prepollination and postpollination isolating mechanisms.
We have focused our efforts on postpollination, prefertilization isolating mechanisms in plants, using the Louisiana irises as a study system.
Although the importance of reproductive isolation in the formation and maintenance of species has been widely accepted (Mayr 1942; Dobzhansky 1951; Littlejohn 1981; Futuyma 1986; Endler 1989; Ridley 1993; but see Paterson 1985), elucidating the genetics and transformation of specific reproductive isolating mechanisms remains a formidable challenge for evolutionary biologists (Coyne and Orr 1989a,b; Endler 1989; Coyne 1993).
Besides the original definition, Dobzhansky's major contribution to this notion is his classification of the biological factors preventing hybridization, the so-called "reproductive isolating mechanisms," and their division into categories acting before (prezygotic) and after (postzygotic) fertilization.