1 / 7

From Competitors to Competitive Dynamics

To gain an advantageous market position. Competitive rivalry. Competitors. Through competitive behavior Competitive actions Competitive responses. What results?. What results?. Competitive Dynamics Competitive actions and responses taken by all firms competing in a market.

vicki
Download Presentation

From Competitors to Competitive Dynamics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. To gain an advantageous • market position Competitive rivalry Competitors • Through competitive • behavior • Competitive actions • Competitive responses What results? What results? • Competitive Dynamics • Competitive actions and responses taken by all • firms competing in a market From Competitors to Competitive Dynamics Engage in Why? How?

  2. Effect of Competitive Rivalry on a Firm’s Strategies • Success of a strategy is determined by: • the firm’s initial competitive actions • how well it anticipates competitors’ responses to them • how well the firm anticipates and responds to its competitors’ initial actions • Competitive rivalry • affects all types of strategies • most dominant influence is on the firm’s business-level strategy or strategies.

  3. Outcomes • Market position • Financial performance • Competitive Analysis • Market commonality • Resource similarity • Interfirm Rivalry • Likelihood of Attack • First mover incentives • Organizational size • Quality • Likelihood of Response • Type of competitive action • Reputation • Market dependence • Drivers of Competitive • Behavior • Awareness • Motivation • Ability A Model of Competitive Rivalry feedback

  4. Competitor Analysis • Competitor analysis • a technique firms use to understand their competitive environment. Along with the general and industry environments, the competitive environment comprises the firm’s external environment • a technique used to help the firm understand its competitors • the first step to being able to predict competitors’ behavior in the form of its competitive actions and responses

  5. What king of competitors are you interested in? Identifying Current Competitors Identifying Potential Competitors Who is the most visible? Who has direct substitutes? Who is selling similar products? Who would be best served by entry? Who is selling to the same customers? Who can overcome the barriers to entry? Who has the resources? Identifying the Competition: A Step-by-Step Approach

  6. Product Strategy Choices of Two Resistor Manufacturers Number of Products Number of Applications Covered Quality/ Reliability Price Point Batch Size Custom vs. Commodity Single One Virtually Premium Single Virtually all Perfect Items custom Few Several Very High High Small Mostly Batches Custom Some Commodity Several Moderately High Above Moderate Mostly Broad Average Batches Commodity Some Custom Many Very Broad Comparable Low Large Virtually All to Industry Batches Commodity = NEC (Nippon Electric Company) = The Semiconductor Firm

  7. What king of competitors are you interested in? Identifying Current Competitors Identifying Potential Competitors Who is the most visible? Who has direct substitutes? Who is selling similar products? Who would be best served by entry? Who is selling to the same customers? Who can overcome the barriers to entry? Who has the resources? Identifying the Competition: A Step-by-Step Approach

More Related