Identifying mobility barriers

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Identifying mobility barriers

Caves, Richard E.; Ghemawat, Pankaj

Strategic management journal, 01/1992, Volume: 13, Issue: 1

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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.

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