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Discuss how value of flexibility would affect our analysis

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Reference no: EM13874643

Although strategic investment can confer an advantage on the first mover, such investment also locks in the firm, which can be a disadvantage if conditions change. For example, the adoption of the standard for compact discs by Philips and Sony in the early 1980s would have been very costly if the market had eventually settled on a different standard. Discuss how the value of flexibility would affect our analysis of strategic advantage.

Reference no: EM13874643

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