Unveiling the Sources of Competitive Advantage: Value Chain Analysis of Software Firms

Abstract

This paper investigates the sources of competitive advantage based on different parts of the value chain within software firms. Drawing on the concept of value chain analysis and strategic management literature, we examine how software firms create and sustain competitive advantages through activities across the value chain, including research and development, production, marketing, distribution, and customer service. Through a combination of case studies and quantitative analysis, we identify key factors and strategic decisions that contribute to competitive advantage in each part of the value chain. Additionally, we explore the dynamic interrelationships among value chain activities and their impact on firm performance and market positioning. Insights derived from this analysis offer valuable implications for strategic decision-making and resource allocation within software firms aiming to enhance their competitive position in the dynamic and competitive software market.