Corporate governence
Williams (1992) distinguishes between fast-cycle, standard-cycle, and slow-cycle markets, based on the speed of erosion of firm competitive advantage as products are copied or rendered obsolete. The Williams model defines each competitive cycle according to common types of competitive conditions, consumer needs, and company resources and capabilities that are linked to the sustainability of competitive advantage. The greatest sustainability of competitive advantage occurs in slow-cycle markets, characterized by resources and capabilities that are durable over long time periods. For example, products and services that benefit from local monopolies often rely on capabilities and resources that are difficult for others to replicate, due to strong isolating mechanisms (Rumelt, 1984) such as superior geographic location, long-term buyer-supplier relationships, or strong intellectual property rights. In addition, governmental policies (e.g. patent policy or market entry regulation) may promote and help to sustain local monopoly advantages for firms in slow-cycle markets, as well as handicap new entrants. Slowcycle capabilities create a dynamic lock-in that, once established, is extremely difficult to displace by rivals. Examples of firms in slow-cycle markets include those with strong intellectual property positions, such as Microsoft in personal computer operating systems and prescription drug companies.
Unlike slow-cycle markets, fast-cycle markets have short product development cycles and no product sustains first-mover advantage for long. Companies operating in these markets face the highest resource and product imitation pressures. Maintaining competitive advantage requires a never-ending barrage of new products. Important firm capabilities and resources for continued competitive advantage include rapid product development capabilities and the ability to get new products to market quickly. Examples of fastcycle markets include...