mobility barriers

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 ?
Programs like GoRide can help eliminate mobility barriers and help ensure patients are able to access the health services they need.
The event addressed differences in entry requirements and learning outcomes that have been causing mobility barriers among European higher education institutions that offer master of arts programs in the information sciences and problems in the recognition of learning outcomes and ECTS (European Credit Transfer and Accumulation System) requirements.
However, observable costs do not include the many intangible types of mobility barriers, for example, reputation and image (Peteraf and Shanley, 1997).
They also offer free on-site consultations at your home or business that are geared towards removing any accessibility or mobility barriers.
The main organisation that provides financial support for investments aimed at eliminating mobility barriers in Poland is the National Disabled Persons Rehabilitation Fund, financed from the state budget.
Next, he said, comes eliminating physical, cultural, and mobility barriers. Removing physical barriers would, facilitate the movement of persons from where they live to the sites where the formal employment is located.
The report, which examines social mobility barriers in the investment banking and life science professions, concludes that people from more privileged backgrounds are over-represented in both professions.
Now, with Uber as our partner, we aim to solve for the mobility barriers too," said Co-Founder Fitpass, Akshay Verma.
For the students who face mobility barriers, community colleges have designed shorter-term study-abroad opportunities, such as three- to six-week travel programs for foreign language immersion or for studying the culture or biology of another country.
Thus, to reconnect growth and more broadly shared prosperity we need full employment, better-targeted manufacturing policy, a strengthened safety net, a higher minimum wage, access to quality preschool, and reduced mobility barriers.
Developing a holistic understanding of individuals' travel behavior and examining their mobility barriers requires that researchers and policy makers link travel to individual agency, space, and time.
Promising to break down social mobility barriers, he said: "Parents have a responsibility to nurture the potential in their children.

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