Barriers to Entry, Technology, and Timing Study Guide
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An information systems study guide from the University of Minnesota.
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Barriers to Entry, Technology, and Timing - Study Guide
doesn’t matter if it’s easy for new firms to enter a market if these newcomers
can’t create and leverage the assets needed to challenge incumbents. Beware
of those who say, “IT doesn’t matter” or refer to the “myth” of the first
mover. This thinking is overly simplistic. It’s not a time or technology lead
that provides sustainable competitive advantage; it’s what a firm does with its
time and technology lead. If a firm can use a time and technology lead to
create valuable assets that others cannot match, it may be able to sustain its
advantage. But if the work done in this time and technology lead can be easily
matched, then no advantage can be achieved, and a firm may be threatened by new
Does technology lower barriers to entry or raise them? Do low entry barriers necessarily mean that a firm is threatened?
Is there such a thing as the first-mover advantage? Why or why not?
Why did Google beat Yahoo! in search?
A former editor of the Harvard Business Review, Nick Carr, once published an article in that same magazine with the title “IT Doesn’t Matter.” In the article he also offered firms the advice: “Follow, Don’t Lead.” What would you tell Carr to help him improve the way he thinks about the relationship between time, technology, and competitive advantage?
Name an early mover that has successfully defended its position. Name another that had been superseded by the competition. What factors contributed to its success or failure?
You have just written a word processing package far superior in features to Microsoft Word. You now wish to form a company to market it. List and discuss the barriers your start-up faces.
2.3 Barriers to Entry, Technology, and Timing by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.