Strategic industry factors

Success in a certain market depends on the ability to produce an effect in the form of a particular set of outcomes and experiences at attractive prices. Whether industry or government, for profit margin or for public trust, the quality of that effect depends on the combination of few factors in a special configuration, a bit like how the loops and contortions of an RFID chip produces a unique electromagnetic wave.

Strategic industry factors (SIF) are table stakes, or the price of entry into a market space. It takes time to develop them since they tend to be specialized in nature. Their value may appreciate or depreciate over time, depending on the nature of the underlying assets, whether that is machinery or industry knowledge. Finally, their value depends on other factors which means they have limited value by themselves. For example, the value of the Netflix platform for streaming video depends of the content they produce or license from studios. Amazon Prime depends on distribution centers, warehouses, and shipping systems, insurance companies compete on the policies and coverages they sell based on a combination of actuarial models, risk pools and industry regulations, or Uber competes using maps, algorithms, drivers and downloads. A fleet of autonomous vehicles are fast becoming a strategic asset for Uber. In the language of economists, a subset of these factors become strategic assets when others find them hard to acquire or replicate.