Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Not walls, windows: capturing value in the digital age

Not walls, windows: capturing value in the digital age Much of strategy has been about defense, building the largest castle with the thickest walls to defend position, and tying down the customer with switching costs, standards, and transaction costs. The digital age changed that, making ineffective the usual competitive advantages of size and scope, infrastructure, and the former capabilities. The metaphor has moved from walls to windows: for transparency, fresh air, connection, and some protection from the harsher elements. A proactive windows strategy assembles scale and scope collaboratively, creates relationships that make switching unattractive, develops intangible resources all along the value chain, and builds co-specialized capabilities. Illustrative examples come from three companies that have thrived in the digital age: eBay (a new company and industry), Lending Tree (new in an old industry), and Charles Schwab (old in an old industry). http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Strategy Emerald Publishing

Not walls, windows: capturing value in the digital age

Loading next page...
 
/lp/emerald-publishing/not-walls-windows-capturing-value-in-the-digital-age-b4LvHe4hQA
Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
0275-6668
DOI
10.1108/02756660410536964
Publisher site
See Article on Publisher Site

Abstract

Much of strategy has been about defense, building the largest castle with the thickest walls to defend position, and tying down the customer with switching costs, standards, and transaction costs. The digital age changed that, making ineffective the usual competitive advantages of size and scope, infrastructure, and the former capabilities. The metaphor has moved from walls to windows: for transparency, fresh air, connection, and some protection from the harsher elements. A proactive windows strategy assembles scale and scope collaboratively, creates relationships that make switching unattractive, develops intangible resources all along the value chain, and builds co-specialized capabilities. Illustrative examples come from three companies that have thrived in the digital age: eBay (a new company and industry), Lending Tree (new in an old industry), and Charles Schwab (old in an old industry).

Journal

Journal of Business StrategyEmerald Publishing

Published: Jun 1, 2004

Keywords: Competitive advantage; Management activities; Management strategy; Technology led strategy

References