ISOLATION.- ACQUISITION OF RESOURCES AND CAPABILITIES
There are two aspects we can mention in reference to the acquisition of resources and capabilities. On one side, we can say that an enterprise can buy these resources or capabilities or it can develop them innovating from within. The time it takes for a competing enterprise to put the necessary resources and capabilities in motion in order to match those of the leading enterprise is the amount of time this competitive advantage will last.
Moreover, we can also say that imitation depends on how complex the resources are. Thus:
• if these resources are very specific, imitation will be more difficult and will require a longer time.
• if these resources are quite simple, imitation will be easier and faster.
ATTACHMENT 3.- THE ADVANTAGE OF BEING THE FIRST
Another way an enterprise has to achieve a competitive advantage over its competitors is by being the first to get to a determined area, for example, a new urban area or an industrial zone. Without a doubt, this aspect carries considerable risks for the investor since, at the moment of starting business, it is not known who will its public objective be nor its demand. It is not known if the product or service being placed in the market will be required by the consumers of this area.
On the other hand, it is also a fact that being the first to arrive grants a series of advantages which would later be impossible to match. As a result, we could say that the first enterprise to establish itself in an area occupies a strategic position when compared to its eventual competitors. These could be better, but the later has the advantage of being there first. ; from there, it must adequate its resources in favour of the newly created demand and its subsequent evolution. When it arrives, the first enterprise finds no demand, but it creates it! This enterprise creates a new demand for a new place. A clear opportunity for business are those that fulfil basic needs. In the picture below, we see a newly created urban area (its commercial spots still on sale) in which the supermarket MERCADONA (Spanish brand) has established itself.
