Jump to ContentJump to Main Navigation
The Nature of ValueHow to Invest in the Adaptive Economy$
Users without a subscription are not able to see the full content.

Nick Gogerty

Print publication date: 2014

Print ISBN-13: 9780231162449

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231162449.001.0001

Show Summary Details

Stable and Unstable Clusters

Stable and Unstable Clusters

Chapter:
(p.141) Chapter Nine Stable and Unstable Clusters
Source:
The Nature of Value
Author(s):

Nick Gogerty

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231162449.003.0009

This chapter discusses the two types of clusters: stable and unstable. Stable clusters, like stable niches in ecology, are places where value flows without being interrupted by too much change. Clusters often converge towards stability as inos and capabilities form a stable web of strategies, and participants consolidate via mergers or exit. Unstable clusters repeatedly destroy shareholder capital, as new competitors constantly enter, shifting the cluster's dominant strategies and required capability set. Firms in these clusters have little ability to sustainably differentiate offerings from competitors. Unstable clusters are easily spotted by characteristics such as little to no repeat customer loyalty, no effective pricing power among competitors, and minimal historical return on capital.

Keywords:   stable clusters, unstable clusters, value, sustainability

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .