ABSTRACT: The article discusses competitive advantage, profitability, and the evolution of organizational structures. Six patterns are identified, which are derived from case studies, theoretical work, and empirical analysis of relevant data. A forecast is offered for the intersection of economics, information science and business strategy for the second and third decades of the 21st century. Topics discussed include the impact of changes in transaction costs on corporate boundaries, competitive advantages conferred by resource endowments, hyper-differentiation of products and services, and the geometry of distribution.
Key words and phrases: hyperdifferentiation, newly vulnerable markets, outsourcing risks, platform envelopment strategies, resonance marketing, resource-based competitive advantage, strategic information systems, transaction costs of outsourcing