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    DEFINITIONS

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    Cler Snts
    The document defines key terms related to competition and competitive dynamics. It discusses competitors, competitive rivalry, behaviors, and analysis. It describes drivers of actions/responses as awareness, motivation, and ability. Actions are strategic or tactical. First movers act initially, second movers respond through imitation. Quality dimensions and dynamics depend on market cycle speed.

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    DEFINITIONS

    Uploaded by

    Cler Snts
    35 views7 pages
    The document defines key terms related to competition and competitive dynamics. It discusses competitors, competitive rivalry, behaviors, and analysis. It describes drivers of actions/responses as awareness, motivation, and ability. Actions are strategic or tactical. First movers act initially, second movers respond through imitation. Quality dimensions and dynamics depend on market cycle speed.

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    The document defines key terms related to competition and competitive dynamics. It discusses competitors, competitive rivalry, behaviors, and analysis. It describes drivers of actions/responses as awareness, motivation, and ability. Actions are strategic or tactical. First movers act initially, second movers respond through imitation. Quality dimensions and dynamics depend on market cycle speed.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views7 pages

    DEFINITIONS

    Uploaded by

    Cler Snts
    The document defines key terms related to competition and competitive dynamics. It discusses competitors, competitive rivalry, behaviors, and analysis. It describes drivers of actions/responses as awareness, motivation, and ability. Actions are strategic or tactical. First movers act initially, second movers respond through imitation. Quality dimensions and dynamics depend on market cycle speed.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    DEFINITIONS

    1. Competitors Firms operating in the same market, offering similar products


    and targeting similar customers

    2. Competitive The ongoing set of competitive actions and competitive


    rivalry responses occurring between competitors as they compete
    against each other for an advantageous market position

    3. Competitive Set of competitive actions and competitive responses the firm


    behavior takes to build or defend its competitive advantages and to
    improve its market position

    4. Multimarket Occurs when firms compete against each other in several


    competition product or geographic markets

    5. Competitive All competitive behaviors—that is, the total set of actions and
    dynamics responses taken by all firms competing within a
    market
    Competitor Analysis

    1. Competitor Describe what firms study to be able to predict competitors’


    Analysis behaviour in the form of their competitive actions and responses.

    2. Market Is concerned with the number of markets with which the firm and
    commonality a competitor are jointly involved and the degree of importance of
    the individual markets to each.
    3. Resource The extent to which the firm’s tangible and intangible resources
    similarity are comparable to a competitor’s in terms of both type and
    amount.
    Drivers of Competitive Actions & Responses

    1. Awareness A prerequisite to any competitive action or response taken by a


    firm, refers to the extent to which competitors recognize the
    degree of their mutual interdependence that results from market
    commonality and resource similarity

    2. Motivation Concerns the firm’s incentive to take action or to respond to a


    competitor’s actions, relates to perceived gains and losses

    3. Ability relates to each firm’s resources and the flexibility they provide.
    Without available resources (such as financial capital and people),
    the firm lacks the ability to attack a competitor or respond to its
    actions. However, similar resources suggest similar abilities to
    attack and respond
    Competitive Rivalry

    Strategic and Tactical Actions

    1. Competitive A strategic or tactical action the firm takes to build or


    action defend its competitive advantages or improve its market position.

    2. Competitive A strategic or tactical action the firm takes to counter


    response the effects of a competitor’s competitive action.

    3. Strategic A market-based move that involves a significant commitment of


    action or organizational resources and is difficult to implement and
    strategic reverse.
    response
    4. Tactical A market-based move that is taken to fine-tune a strategy; it
    action or involves fewer resources and is relatively easy to implement and
    tactical response reverse.
    Likelihood of Attack

    • First mover

    • A firm that takes an initial competitive action in order to build or defend its
    competitive advantages or to improve its market position

    • Second mover

    • A firm that responds to the first mover’s competitive action, typically through
    imitation

    • Late mover

    • A firm that responds to a competitive action, but only after considerable time
    as elapsed after the first mover’s action and the second mover’s response
    Quality Dimensions of Goods and Services
    Competitive Dynamics

    1. Slow-cycle Markets in which the firm’s competitive advantages are


    markets shielded from imitation for what are commonly long periods
    of time and where imitation is costly.

    2. Fast-cycle Markets in which the firm’s competitive advantages


    markets aren’t shielded from imitation and where imitation happens
    quickly and perhaps somewhat inexpensively.

    3. Standard-cycle Markets in which the firm’s competitive advantages are


    markets moderately shielded from imitation and where imitation is
    moderately costly.

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