Strategic Assets

John Kay

in Foundations of Corporate Success

Published in print April 1995 | ISBN: 9780198289883
Published online November 2003 | e-ISBN: 9780191718205 | DOI:
 Strategic Assets

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Certain competitive advantages are based not on the distinctive capabilities of firms but on their dominance or market position. These are the ‘Strategic Assets’ of the company and can broadly be separated into three main types. Natural Monopolies occur in markets that cannot accommodate more than one firm, Sunk Costs can prevent entry by resulting in a different cost structure between the incumbent and potential entrants, while Market Restrictions such as licences and regulation can further deter entry. These are different from distinctive capabilities in that they could be acquired by any company facing similar circumstances.

Keywords: competitive advantage; dominance; government; licences; monopoly; regulation; strategic assets; sunk costs

Chapter.  4761 words.  Illustrated.

Subjects: Microeconomics

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