How a New Distribution Paradigm Changes the Core Resources, Competences and Capabilities Endowment: The Case of Mobile Application Stores

Abstract

The study argues that a shift in the distribution paradigm in place has deep strategic implications, with specific reference to the resources, competencies and capabilities firms leverage to achieve competitive advantage. Analyzing the upfront issue related to the rise of the Mobile Application Store model as a substitute to the original Mobile Portal model from the Mobile Network Operator perspective, the study aims at describing how the introduction of a new distribution paradigm affects and transforms a firm’s resources and assets portfolio. The findings show the core resources endowment characterizing Operators is significantly altered due to the appearance of the alternative Store model and the underneath Mobile-Web revolution, causing the fall of some traditional unique assets, and the concurrent rise of emerging resources and dynamic capabilities, moreover, light is shed on other strategic matters influenced by such change, ranging from the nature of competition to incumbents’ and challengers’ strategies to induce, avert or co-opt potentially disruptive innovation.