SUSTAINABLE COMPETITIVE ADVANTAGES IN THE INDUSTRY OF MOBILE GAMBLING

University essay from KTH/Nationalekonomi

Abstract: This study investigates how firms in the mobile gambling industry can develop long-term competitive advantages through utilizing firm specific resources and capabilities. The aim of this research is to connect classical theoretical knowledge with the challenges the modern industry of mobile gambling is facing. Earlier research within the subject are limited, however previously findings indicates that fast response time, logic site mapping and security are important factors when consumer are choosing supplier for mobile gambling. Data is collected through a consumer survey and interviews with three industry experts, moreover; a theoretical framework from previously conducted research are underpinning the study. The results show that firms should focus internal resources and capabilities to develop a superior technology. A superior technology can generate numerous of competitive advantages, as well as working as a leverage effect in other areas. Moreover, superior technology will also likely be sustainable over time by being governed by isolating mechanisms. Lower price is discussed as a competitive advantage in the mobile industry, however findings indicates several of long run negative effects enabled through a lower price. Future research needs to investigate how customization and dynamic offerings can optimize a firm’s profit. Future research should also investigate what kind of negative effects mobile gambling could have on the social welfare in terms of total effects.

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