Presentation by:

CHAPTER 05 LUBIANO . SANTIANEZ STRATEGIC MANAGEMENT

THE

DYNAMICS AND
COMPETITIVE
RIVALRY
 today's reporters

YNNAH CHARLENE
SANTIANEZ LUBIANO

Chapter05 THE DYNAMICS AND COMPETITIVE RIVALRY

 T H E I C E B R E A K E R

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Chapter05 THE DYNAMICS AND COMPETITIVE RIVALRY

Objectives
01 To Understand the importance of competitive dynamics
02 To Know the importance of global market and its
competitive advantage
03 To develop tactical actions to competitive rivalry
04 To Enumerate the factors that influence the likelyhood of
rivalry attack
05 To give the importance of product quality as strategy
for competitiveness
06 To enumerate the different dynamics of rival's responce
actions
Chapter 05 THE DYNAMICS AND COMPETITIVE RIVALRY

Competitive
Dynamics
is the firm's total set of actions and responses to all competitors
within the market niche.
it also makes the firm alert in the developing scenario in the industrial
world.
Competitive dynamics requires innovations and new strategic
actions that will develop the firm's competitive advantage.
The Dynamics of
Global Competitions

Globalization is the target of most firms as the

market expansions in the direction of
populated countries of the world.

Chapter 05 THE DYNAMICS AND COMPETITIVE RIVALRY

The Dynamics of
Global Competitions

Acceptable quality means that the product

standards will last until the next new product
will surface in the market, as innovation will
replace the existing ones.

Chapter 05 THE DYNAMICS AND COMPETITIVE RIVALRY

The Dynamics of
Global Competitions

The dynamics of competition will be on the

developed economies of the world as they have
the necessary technology and infrastructure to the
disadvantage of the new developing economy.

Chapter 05 THE DYNAMICS AND COMPETITIVE RIVALRY

 Chapter 05 THE DYNAMICS AND COMPETITIVE RIVALRY

The model of The total number of competitors 01

The firms must be able to conduct market analysis

Competitive Strategy to predict the nature and extent of competition

and rivalry.

Competitive rivalry evolves from the patterns

of actions, responses as one’s pattern of
action have noticeable effect on the
The market characteristics 02
competitors, and it elicited competitive Concerned with the number of markets with which
response. the firm and its competitors are jointly involved
and the degree of its importance to both firms.
 Chapter 05 THE DYNAMICS AND COMPETITIVE RIVALRY

The model of
Competitive Strategy The quality and extent of
individual firm's strategy 03
Competitive rivalry evolves from the patterns in the analysis of the competitors, strategy of firms
of actions, responses as one’s pattern of must be able to identify its tangible and intangible
action have noticeable effect on the resources and that of the competitors.
competitors, and it elicited competitive
response.
 Straregic Response
to Competitor's Action
CORPORATE AWARNESS MOTIVATION TO RESPOND TO
TO COMPETITION COMPETITION

It is a prerequisite to any
competitive action or response. It refers to the corporate
This refers to the extent to which incentives to act or respond to
competitors recognize the
the competitors attack to
degree of their mutual
interdependence in terms of
perceive gains and losses.
market commonality and
resources similarity

Chapter 05 THE DYNAMICS AND COMPETITIVE RIVALRY

Chapter 05 THE DYNAMICS AND COMPETITIVE RIVALRY

Straregic Response
to Competitor's Action
DISSIMILARITY OF
ABILITY IN TERMS OF
RESOURCES AND OPERATIONAL
RESOURCES AND TECHNOLOGY
CAPABILITY

it must consider the It refers to the competitive

availability of the resources action
and technology at hand to and response between firms in
that the greater the resources
enter the market
imbalance between the actors of
competition.
competition or respondent
competitors.
 Tactical Actions to
Competitive Rivalry
THE FIRM’S MARKET POSITION THE STRATEGIC ACTION

COMPETITIVE RESPONSE A TACTICAL RESPONSE

 Factors that
Influence the
likelihood of Rivals'
attack
Chapter 05

THE DYNAMICS AND COMPETITIVE RIVALRY

 Chapter 05

1. Pioneering Incentive Strategy

01 Pioneer or First Mover Strategy
these firms initiate competitive action to build competitive advantage
in order to improve market position.

-> The First Movers have the following advantages:

Consumer's loyalty to the product is developed
Satisfied customer became committed to the product

THE DYNAMICS AND COMPETITIVE RIVALRY

 Chapter 05

1. Pioneering Incentive Strategy

02 Imitators or Second Mover Strategy
The clever second mover studies the success and failure of the first
mover and develop process and technologies that may be superior in
creating customer value
-> The imitators or Second Movers' Advantages are:
Avoid the problems and mistake of the pioneers or first mover.
Develop technologies and efficiency that are more superior.
Create products that create customer value.

THE DYNAMICS AND COMPETITIVE RIVALRY

Presentation by LUBIANO . SANTIANEZ THE DYNAMICS AND COMPETITIVE RIVALRY

2. Organizational Size Strategies

Big Companies used to set on their laurels confidents that are competitors could not easily overtake
their size while Smaller organization that are aggressive enough to increase their market niche are
more likely to launch competitive actions.

Chapter 05
 Chapter 05

2. Organizational Size Strategies

-> The Competitive strategies of smaller firms against its big rivals
are:
1. Lower investments Cost in research and development
2. Lower fixed and overhead expenses
3. Technology and resources base through imitation
4. Quicker and flexibility in action and response
5. Lower product price with new features

THE DYNAMICS AND COMPETITIVE RIVALRY

Presentation by LUBIANO . SANTIANEZ THE DYNAMICS AND COMPETITIVE RIVALRY

3. Product Quality Strategies

Quality in competitive strategy is the production of goods or services with no
defects involving a never-ending cycle of continuous improvement.

In strategic objectives, quality refers to how the firm produces products that exceed
customer expectations.

For the corporate perspective, quality is an outcome of how the firm complete the
cycle of the primary and support activities that develops customer satisfaction that
gives the firm the desired return on investments.
Presentation by LUBIANO . SANTIANEZ THE DYNAMICS AND COMPETITIVE RIVALRY

3. Product Quality Strategies

Customer's perception of quality products

1. Performance
2. Product Features
3. Flexibility
4. Durability
5. Aesthetics
6. Serviceability
 The Dynamics Of
Rival's Responses
Competitive dynamics concern the ongoing competitive behavior occurring
among all firms competing in a market for advantageous positions. Market
characteristics affect the set of actions and responses firms take while
competing in a give market as well as the sustainability of firms' competitve
advantage.

Chapter 05 THE DYNAMICS AND COMPETITIVE RIVALRY

THE DYNAMICS AND COMPETITIVE RIVALRY

actors tha t A ffects Com

tant F peti
por tors R
e Im Chapter 05
iva
hre lry:
T

FACTORS THAT THE DRIVERS OF THE LIKELIHOOD THAT

DETERMINES THE DEGREE COMPETITIVE BEHAVIOR THE COMPETITOR WILL
TO WHICH FIRMS ARE FOR INDIVIDUAL FIRMS ATTRACK OR RESPOND
COMPETITORS
 Presentation by LUBIANO SANTAINEZ

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THE DYNAMICS AND
Chapter 05 COMPETITIVE 2023
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