TY - JOUR
AU - Yao, Dennis A.
AB - Research summary: This article proposes an approach for modeling competitive interactions that incorporates the costs to firms of changing strategy. The costs associated with strategy modifications, which we term “repositioning costs,” are particularly relevant to competitive interactions involving major changes to business strategies. Repositioning costs can critically affect competitive dynamics and, consequently, the implications of strategic interaction for strategic choice. While the literature broadly recognizes the importance of such costs, game‐theoretic treatments of major strategic change, with very limited exceptions, have not addressed them meaningfully. We advocate greater recognition of repositioning costs and illustrate with two simple models how repositioning costs may facilitate differentiation and affect the value of a firm's capability to reduce repositioning costs through investments in flexibility.
TI - Elevating Repositioning Costs: Strategy Dynamics and Competitive Interactions
JF - Strategic Management Journal
DO - 10.1002/smj.2635
DA - 2017-10-01
UR - https://www.deepdyve.com/lp/wiley/elevating-repositioning-costs-strategy-dynamics-and-competitive-QsaML5oiBw
SP - 1953
EP - 1963
VL - 38
IS - 10
DP - DeepDyve
ER -