NABET, NABET 2017 Conference

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Fast Changing Markets, Transient Competitive Advantage and Key Organizational Element for Firms
Jeffrey Yi-Lin Forrest, Pavani Tallapally

Last modified: 2018-01-13

Abstract


By combining systemic thinking and traditional logic of reasoning of microeconomics, this paper establishes a main result on how the base of loyal customers diminishes with increase in the number of competing firms. On top of this result, the rest of the paper provides deductive explanations by using the systemic yoyo model for why markets change faster and customers are less patient than ever before, and what the most important organizational element is for firms to successfully surf through waves of transient competitive advantages one after another. Other than what is illustrated in this paper, this work provides a practically useful intuition for making sound and quick managerial decisions.


Keywords


loyal customer, Nash equilibrium, organizational efficiency, systems thinking, world market