The competitive advantage in the age of digitalization

Abstract

The nature of the competitive advantage concept is changing in the digital era. The relationship between the company and its customers emerges at the core of the company’s competitive advantage. This relationship is formed by digital technologies. The value proposition in digital industries is provided not by a single company but rather with the help of a network of cooperating companies. This transforms the nature of competition into the “cooperative competition” realized through ecosystems. Ecosystems emerge on the basis of cooperation network by partnering companies building joint value proposition to their customers. Ecosystems experience their own dynamics and require special management skills, often different from the skills required to manage a single company.