Calling spirits from the deep : competing for and through sophisticated customers
Thesis (Ph.D.)--Massachusetts Institute of Technology, Sloan School of Management, 2001.
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| Format: | Thesis |
| Language: | eng |
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Massachusetts Institute of Technology
2005
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| Online Access: | http://hdl.handle.net/1721.1/8772 |
| _version_ | 1826197112375738368 |
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| author | Rockart, Scott F., 1968- |
| author2 | John D. Sterman. |
| author_facet | John D. Sterman. Rockart, Scott F., 1968- |
| author_sort | Rockart, Scott F., 1968- |
| collection | MIT |
| description | Thesis (Ph.D.)--Massachusetts Institute of Technology, Sloan School of Management, 2001. |
| first_indexed | 2024-09-23T10:42:40Z |
| format | Thesis |
| id | mit-1721.1/8772 |
| institution | Massachusetts Institute of Technology |
| language | eng |
| last_indexed | 2024-09-23T10:42:40Z |
| publishDate | 2005 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/87722019-04-11T13:56:29Z Calling spirits from the deep : competing for and through sophisticated customers Rockart, Scott F., 1968- John D. Sterman. Sloan School of Management. Sloan School of Management. Sloan School of Management. Thesis (Ph.D.)--Massachusetts Institute of Technology, Sloan School of Management, 2001. Includes bibliographical references. This thesis explores why professional services industries stratify into hierarchies and how firms change their positions in those hierarchies over time. Essay one is entitled "Reinforcing feedback between market position and firm capabilities" and asks why Merrill Lynch succeed in building a leading investment-banking practice while rival brokerage firm Paine Webber tried and failed. The two firms' experiences and previous research are used to specify a model of competition among professional services firms. Reinforcing feedback between the nature of a firm's client work and its capabilities and intendedly rational policies lead to a hierarchy of industry competitors. Analysis of the model highlights two key elements differentiating Merrill Lynch's and PaineWebber's efforts to improve: speed in developing capabilities and discipline in accepting and rejecting client work. Essay two is entitled "You are whom you serve." It explores why hierarchies develop in professional-services industries where some firms develop stronger capabilities and execute more sophisticated client work than their rivals do. The paper develops and analyzes a game-theoretic model based on competition in the investment-banking industry. One outcome of the model is an asymmetric competitive structure where firms serve different kinds of customers, charge different prices, and earn different economic returns. That outcome is analyzed over a range of cost structures and client preferences to derive implications for firm size and economic welfare. Essay three is entitled simply "Merrill Lynch and PaineWebber." Sustained differences in profitability are evident among firms within the securities industry. Two firms, Merrill Lynch and PaineWebber, are studied to identify structural and managerial reasons why one succeeded in developing the market position and firm capabilities both sought while the other failed. The paper draws on interviews with current and former employees of the two firms and other industry experts. Interview data are checked and complemented with three decades of underwriting and two decades of merger and acquisition transaction data, annual reports, and data and commentary appearing in the industry press and academic press as well as industry association publications. by Scott F. Rockart. Ph.D. 2005-08-23T15:12:06Z 2005-08-23T15:12:06Z 2001 2001 Thesis http://hdl.handle.net/1721.1/8772 48126028 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 140 leaves 11932956 bytes 11932716 bytes application/pdf application/pdf application/pdf Massachusetts Institute of Technology |
| spellingShingle | Sloan School of Management. Rockart, Scott F., 1968- Calling spirits from the deep : competing for and through sophisticated customers |
| title | Calling spirits from the deep : competing for and through sophisticated customers |
| title_full | Calling spirits from the deep : competing for and through sophisticated customers |
| title_fullStr | Calling spirits from the deep : competing for and through sophisticated customers |
| title_full_unstemmed | Calling spirits from the deep : competing for and through sophisticated customers |
| title_short | Calling spirits from the deep : competing for and through sophisticated customers |
| title_sort | calling spirits from the deep competing for and through sophisticated customers |
| topic | Sloan School of Management. |
| url | http://hdl.handle.net/1721.1/8772 |
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