Competition and competitive groupings: An exploratory study in information technology markets

The focus of the research is upon the means by which firms can both create and sustain a competitive advantage. The paper addresses the relationship between shifting patterns of competitive rivalry and the emerging structure of a volatile, but growing branch of the Information Technology Industry. The concept and existence of competitive groups of firms is explored from three perspectives: those of the research analyst, the competitive suppliers and the customers of the service. The first perspective draws upon and applies previous work in the field of strategic groups, mobility barriers and company competences; the second perspective is operational, based upon the perception of the competitive environment by practising managers; the final perspective draws upon field research into customer organisation rooted in the notion that differentiation by suppliers will only be manifest in competitive advantage when it matches customers needs. Different patterns of competition are identified and strategic management choices are highlighted in a product market undergoing turbulent development with the onset of telecommunication networks for the transmission of computerised data bases.