Barriers to Entry, Technology, and Timing Study Guide
Barriers to Entry, Technology, and Timing Study Guide

Barriers to Entry, Technology, and Timing Study Guide

Source: University of Minnesota Libraries

Student Price: FREE

An information systems study guide from the University of Minnesota.

Barriers to Entry, Technology, and Timing - Study Guide

It 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 entrants.

Discussion Questions


​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 Name another that had been superseded by the competition.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.


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