08 BUS 444 Chap 8

A dynamic capabilities b market commonality c first

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Unformatted text preview: Question Aircraft makers Boeing and Airbus have a high degree of __________ because they make very similar products and have many buyers in common. A. Dynamic capabilities B. Market commonality C. First mover advantages D. Equity funding 8-39 Five “Hardball” Strategies • Devastate rivals’ profit sanctuaries • Plagiarize with pride • Deceive the competition • Unleash massive and overwhelming force • Raise competitors’ costs 8-40 Strategic and Tactical Competitive Actions 8-41 Likelihood of Competitive Reaction • How a competitor is likely to respond will depend on three factors 1. Market dependence 2. Competitor’s resources 3. The reputation of the firm that initiates the action (actor’s reputation) 8-42 Choosing Not to React • Forbearance a firm’s choice of not • Co-opetition A firm’s strategy of reacting to a rival’s both cooperating and new competitive competing with rival action. firms. 8-43...
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