Emerald Management Review:
The DNA of industrial competitors

Abstract:

Purpose - To develop a framework for competitive analysis in high-tech industries that is based on the integrated theories of strategic management and competitor analysis, and is made operational by means of a step-by-step procedure that is applied to the mobile phone industry from the perspective of three Taiwanese companies.

Design/methodology/approach - The structure and functioning of deoxyribonucleic acid (DNA), which carries genetic information through which traits of a life are reproduced from generation to generation, is used as a model to view the strategic behaviour of companies working under competition. Proposes an approach that uses a sequence of value-creation activities, known as the value chain, that mirrors the chromosome in the DNA chain as the agency carrying biological information, to emulate a company's competitive DNA chain. Explains the five steps involved in this process and their application to a case study of the mobile phone industry, involving three mobile phone suppliers (Samsung Network's mobile phone division, Compal Communications, Inc., BenQ's Communications division).

Findings - The results indicated that Samsung is the species with more advantages in the competitive pool and its DNA chain is made of stronger links than the other two companies, has superior capabilities in application research and development (R&D), platform hardware, industrial design, production, and marketing; while BenQ may be the weakest species since there is no strong competitive edge in its DNA chain. Concludes that, when a company finds its competitive advantage eroding, it may reconfigure its value-creation activities in a process analogous to the mutation of DNA to regain its competitive edge.

Originality/value - Applies an ingenious biological/genetic parallel to the process used by companies to respond to competition and competitive pressure.

Keywords:

Article Type:

Case study

Reference:

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