Competitive Strategy and the Implementation Of a New Network Technology - The Case of EFTPoS in the UK

Abstract

This paper describes how the changing competitive relationship between the UK banks influenced the design and implementation of a national Electronic Funds Transfer at Point of Sale (EFTPoS) network. This theme emerged from a grounded theory analysis of interviews with EFTPoS managers. Key events, which had ambiguous interpretations in terms of the initial cooperative approach to network design, later became elements of a new, highly competitive approach to rivals. The range of relevant technical choices was altered by this change. Many became redundant or ceased to exist, while the views of outsiders, especially retailers, became a more important influence on network design.