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Content: There are three areas where a firm’s distinctive capabilities may yield a competitive advantage. These are: • Innovation If a firm is innovative it may obtain an advantage over competitors. However  Authentic Iman Shumpert Jersey  , this advantage only lasts for the length of time it takes for imitation to be effective. Innovation is particularly open to imitation. Even patents lapse or are vulnerable to new technology. Innovation advantages can only be maintained if the firm has other capabilities which make imitation of the technology on its own insufficient to erode the established firm’s competitive advantage. • Architecture Architecture refers to the firm’s internal organization. For example, the famous bootroom ensured long periods of success for Liverpool Football Club in the 1960s to the 1980s. However, if the market changes the types of advantage can be eliminated by rivals. • Reputation If a firm has a reputation for providing good quality and service  Authentic Dwyane Wade Jersey  , it will help add value and generate more sales. Reputation can be sustainable over long periods, making it difficult for entrants to compete on equal terms with a reputable incumbent. Overall, the managerial approach argues that the strategic decisions made by firms affect their performance. Firms only obtain an advantage over competitors if they can protect their strategies against imitation. The ease with which firms can imitate one another is affected by institutional and economic factors. For example  Authentic Derrick Rose Jersey  , institutional factors which may prevent imitation include the imposition of restrictive employment contracts which prevent individuals from using any firm-specific knowledge if they were to move to a rival firm. The ‘corporate culture’ of an organization can yield advantages over competitors. For example, an organization which gives long-term contracts to employees may be able to obtain a greater degree of commitment from its workforce, which enables it to work more effectively. Corporate culture is particularly difficult for other firms to imitate. Economic factors affecting the speed at which imitation takes place include the expected profits and the associated risks of pursuing a given strategy. Imitation is more likely to take place at a faster rate if the expected profits from imitating such a strategy are large. However  Authentic Channing Frye Jersey  , if there are high risks associated with adopting such a strategy, imitation takes place at a slower rate. Although the managerial approach provides important insights into how firms can obtain and sustain competitive advantages over rivals, these insights have been neglected in much of the industrial organization literature  Authentic Brad Daugherty Jersey  , especially in empirical studies. This is partly due to difficulties in measuring many of the variables used in the managerial literature to explain competitive advantages. However, a more fundamental disadvantage of the managerial approach is that it does not place enough emphasis on interactions between firms. In the managerial literature, the focus is mainly on the strategic options available to the individual firm. 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