Logo

Go on. Explore!

lvl 0 • 0 xp

lvl 1

HomeMarketDecksInterests
Competitive Rivalry and Competitive Dynamics

Competitive Rivalry and Competitive Dynamics

memorize.aimemorize.ai (lvl 286)
Star 0%
Star 0%
Star 0%
Star 0%
Star 0%
(0)
(1)
(1)
33 cards
()
Section 1

Preview this deck

competitive rivalry with strategy

Front

1 / 33

Competition Prep
Star 0%
Star 0%
Star 0%
Star 0%
Star 0%

0.0

0 reviews

5
0
4
0
3
0
2
0
1
0

Active users

1

All-time users

1

Favorites

0

Last updated

1 year ago

Date created

Mar 1, 2020

Cards (33)

Section 1

(33 cards)

competitive rivalry with strategy

Front

•Strategy can't be decided without taking into account the actions and responses of competitors. -actions elicit responses and result in responses

Back

quadrant iv

Front

-Firms using similar resources or strategies in different markets •Coke vs. Pepsi for salty snacks

Back

what affects competitive behavior?

Front

awareness, motivation, ability

Back

likelihood of competitor to attack

Front

hisotry as first, second, or late mover organizational size quality of products/services and ability of competitor to improve quality

Back

First, Second, Late

Front

- competitive personalites - each strategy requires different resources and capabilites - when "wired" to behave- compete in predictable way - competitor's history to assess their future behavior

Back

awareness of interdependence

Front

-Competitive actions / reactions must be anticipated as part of strategy -Lack of awareness can lead to excessive competition

Back

market commonality and resource similarity

Front

Both ___ and ___ affect the awareness and motivation of a firm to undertake actions and responses

Back

firm track records- second movers

Front

-very aware -good at market analysis, process management - may have high returns if good second movers

Back

market commonality

Front

number of markets with -which the firm and a competitor are jointly involved degree of importance of the individual markets to each firm firms competiting can respond to competitiors actions in - market in which action was taken - other common markets

Back

market commonality and resource similarity

Front

quadrants

Back

competitive analysis

Front

step 1) map current or poteitnal comp. -assess market commonality -assess similarity of resources of competitiors

Back

strategic success

Front

depsnds on:: -initial strategic actions -how well anticipates competitior repsonse -how well response to competititor actions. need competitior analysis

Back

Competitive Dynamics: Fast-Cycle Markets

Front

- subject to imitation - competitive advantage not sustainable - ADVANTAGES OF FIRST MOVER STRATEGY MOST SIGNIFICANT IN FAST CYCLE MAREKT ex: IB prodcuts, CPUs

Back

firm track records- late movers

Front

-laggards -small, risk averse -average returns

Back

competitors are

Front

firms operating in same market, similar products and customers

Back

second mover

Front

learns from first mover -May enable avoidance of mistakes and reduction of costs Has more time than first mover to improve efficiency or provide greater value benefits from established market

Back

likelihood of a competitor to respond

Front

increased likelihood of a response if: -action leads to improvement in competitors competitive position - action damages initiating firm's advantage - weakens the ability of initaiting firm to defend its position benefits > cost of responding

Back

model of competitive rivalry

Front

-who -what causes behavior -how likely is behavior (attack and response)

Back

competitive behavior consists of

Front

the set of competitive actions and responses a given firm takes to build or defend its competitive advantages and to improve its market position

Back

competitive dynamics

Front

- characteristics of a market that affect all competitiors fast cycle market, slow market, standard market - choice of successful strategy is affected by competitive dyanamics

Back

Competitive Dynamics: Slow-Cycle Markets

Front

- imitation costly - industires monopolistic, highly regulated - competitive advantages are sustainable in slow-cycle market - firms concentrate on competitive actions and responses to protect, maintain and extend propreitary competitive advantage - second mover and late mover firms ex: pharma, large aircraft

Back

quadrant I

Front

-Direct and mutually-acknowledged competitors •UPS vs. FedEx

Back

quadrant ii

Front

-Industry participants using different resources / strategies in common markets •Trains (Amtrak), airlines (Southwest vs. United, Delta, etc.)

Back

motivation

Front

- firm's incentive to take action or to respond to a competitor attack - reflects perceived gains and losses - aware of competitor but not attack if no potential gain

Back

awareness

Front

-Refers to awareness of competitors of their interdependence resulting from •Market commonality Resource similarity

Back

quadrant iii

Front

-Are not direct and mutually-acknowledged competitors •Grocery stores vs. Restaurants

Back

resource similiarty

Front

extent to which a firm's tangible adn intangible resources are compariable to a competitors type and mount -similar resrouces have similar S&W and strategies

Back

competitive rivalry describes

Front

overall set of competitive actions and responses within industry

Back

late mover

Front

late mover firms respond only after significant time has elapsed from the initial action taken by first and second movers - not typically a winning strategy

Back

Competitive Dynamics: Standard-Cycle Markets

Front

- moderate cost of imitation may shield competitive advantages - partially sustainable if thier quality is continuously upgraded firms -seek large market shares -gain customer loyalty through brand names - carefully control operations

Back

first-mover advantage

Front

significant: in fast cycle markets -in fast-cycle markets (e.g. rapid technological change and obsolescence) -If customer loyalty can be built If market share gained is "sticky needs funds for: -Product innovation and development -Aggressive advertising Advanced research and development NEED SUFFICIENT RESOURCES/SLACK RESOURCES.

Back

firm track records- first movers

Front

-nimble, innovative -risk tolerant -may have high returns if successful

Back

ability

Front

firm's resources and the flexibility they provide - key resources include financial capital and people - competitor with similar sources has ability

Back