Identifying mobility barriers

• Published in: Strategic management journal Vol. 13; no. 1; pp. 1 - 12
• Main Authors: Caves, Richard E., Ghemawat, Pankaj
• Format: Journal Article
• Language: English
• Published: Chichester John Wiley & Sons, Ltd 01.01.1992; John Wiley and Sons; Wiley; John Wiley; Wiley Periodicals Inc
• Subjects: Advertising expenditures; Applied sciences; Competition; Competitive advantage; Consumer goods industries; Differentials; Exact sciences and technology; Firm modelling; generic strategies; Gross margins; Income estimates; Industrial market; Industry analysis; intraindustry profit differentials; Market share; Market shares; Mobility barriers; Operational research and scientific management; Operational research. Management science; Profit margins; Profitability; Profits; Statistical analysis; Strategic management; Variables; Firm management
• ISSN: 0143-2095; 1097-0266
• DOI: 10.1002/smj.4250130102

This paper uses a new (PIMS) research data base to identify the mobility barriers-the factors associated with sustained intraindustry profit differentials-in a cross-section of industries. The exercise suggests that differentiation-related factors play more of a role in generating intraindustry profit differentials than do cost-related ones. It also indicates that differentiation-related advantages tend to be absorbed into fatter margins and (in some instances) larger maket shares, while cost-related advantages are taken primarily in the form of increases in market share.