Week 5-Competitive Dynamics

Week 5-Competitive Dynamics - Competitive Dynamics...

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Competitive Dynamics Instructor: Mahka Moeen Spring 2012 1
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Definitions Competitors Firms operating in the same market, offering similar products and targeting similar customers Examples: Boeing vs. Airbus Southwest vs. Delta Coca-Cola vs. Pepsi Amazon vs. Barnes & Nobles
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Definitions Competitive Rivalry The ongoing set of competitive actions and responses occurring between competitors Firm’s are mutually interdependent. One firm’s competitive action has a noticeable effects on competitors, eliciting competitive responses. Influences a firm’s ability to gain and sustain competitive advantages
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Definitions Competitive Action (Attack) An action that a firm takes to build or defend its competitive advantage or improve its market position. Competitive Response An action that a firm takes to counter the effects of a competitor’s competitive action Strategic vs. Tactical actions A strategic action involves a significant commitment of organizational resources and is difficult to reverse. (strategic)
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Competitor Analysis Analysis of competitors’ future objectives, current strategies, assumptions, and capabilities. With the analysis, a firm is better able to predict competitors’ behaviors when forming its competitive actions and responses. What do you need to know about competitors? Resource similarity : the extent to which the firm’s tangible and intangible resources are comparable
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Competitor Analysis Competitor Intelligence The ethical gathering of needed information and data
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Week 5-Competitive Dynamics - Competitive Dynamics...

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