1.Factors that make imitation costly
- Unique historical conditions :They contributed to unique evolutionary pattern of growth for a particular organization.Unique location,patents and mineral rights are example,Disney's Mickey Mouse.
- Causal ambiguity :This occurs competitors are unable to understand the foundation of strategic advantage for an organization.
- Social complexity :Complex social factors,such as interpersonal relationship,trust,friendship and reputation make imitation costly.
- Economic deterrence :Scale sensitive products that involve large capital investment make imitation costly.
2.Factors that make imitation easy :
- Transparency :It is the speed with which competitors can understand the foundation of strategic advantage.
- Transferability :It is the ability of competitors to together resources and competitors ti imitation strategic advantage transfer of technology facilities limitation.
- Substitutable :If no substitutes for resources and competencies exit,strategic advantage is imitable.
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