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 ?
Eliminating cultural and mobility barriers would ensure that there is no discrimination by sex or race in the formal workplace.
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.
The lack of understanding of travel behavior and the mobility barriers facing low-income individuals is further exacerbated because low-income individuals are less likely to participate in travel behavior research (Agrawal et al.
Promising to break down social mobility barriers, he said: "Parents have a responsibility to nurture the potential in their children.
The Labour Mobility Act is a result of Canada's premiers January 2009 agreement to amend the 1994 Agreement on Internal Trade to remove labour mobility barriers for certified workers.
Rather than provide expedited mobility, California's provision created additional mobility barriers, drove up costs to clients and applied to out-of-state CPAs whose clients had limited contact with California.
Culminating in April 2009, TILMA will steadily dismantle trade and labour mobility barriers between Alberta and B.
The effects of innovation on income inequality can be mitigated by strengthening the educational system and reducing mobility barriers, implying that federal and provincial governments should examine their approaches to education, with close attention to fundamental analytical skills, and emphasize policies that support labour mobility.
Those changes would eliminate a notification provision that was creating unnecessary mobility barriers.

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