zymbaclass@hotmail.comChapter5CompetitiveDynamicszymbaclass@hotmail.comDecliningemphasisonsingle,domesticmarketsandincreasingemphasisonglobalmarketsAdvancesincommunicationtechnologymakecoordinationeasieracrossmultiplemarketsAdvancesintechnologyandinnovationhaveincreasedcompetitivenessofsmallandmediumsizedfirmsNationalbarriersarefallingduetothenumberandscopeoftradeagreements(GATT/WTO,NAFTA,EEC/EU)FactorsLeadingtoMoreComplexRivalryzymbaclass@hotmail.comCompetitiveDynamicsResultsfromaseriesofcompetitiveactionsandcompetitiveresponsesamongfirmscompetingwithinaparticularindustryCompetitiveRivalryExistswhentwoormorefirmsjockeywithoneanotherinthepursuitofbettermarketpositionzymbaclass@hotmail.comActionsandresponsesshapethecompetitivepositionsofeachfirm’sbusinesslevelstrategyActionstakenbyonefirmelicit(引起)responsesfromcompetitorsAfirm’sstrategicconductisdynamicinnatureCompetitiveresponsesleadtoadditionalactionsfromthefirmthatactedoriginallyCompetitiveDynamicszymbaclass@hotmail.comRelativeSizeSpeedInnovationQualityAbilityforActionandResponseOutcomesDriversofCompetitiveBehaviorAwarenessMotivationCapabilityCompetitorAnalysisMarketCommonalityResourceSimilarityInterfirmRivalry:Attack&ResponseLikelihoodofAttackFirstMoverIncentivesLikelihoodofResponseTypeofCompetitiveActionDependenceontheMarketResourceAvailabilityActor’sReputationCompetitiveSlow,StandardorFastCycleMarketTypesCompetitiveSustainedOutcomesCompetitiveAdvantageTemporaryAdvantageEvolutionaryOutcomesEntrepreneurialorMarket-PowerGrowth-OrientedActionsFeedbackModelofInterfirmRivalry:LikelihoodofAttackandResponsezymbaclass@hotmail.comDriversofCompetitiveBehaviorMotivationCapabilityAwarenessModelofInterfirmRivalry:LikelihoodofAttackandResponseDomanagersunderstandthekeycharacteristicsofcompetitors?Awarenesszymbaclass@hotmail.comDoesthefirmhaveappropriateincentivestoattackorrespond?DriversofCompetitiveBehaviorMotivationCapabilityAwarenessModelofInterfirmRivalry:LikelihoodofAttackandResponsezymbaclass@hotmail.comDoesthefirmhavethenecessaryresourcestoattackorrespond?DriversofCompetitiveBehaviorMotivationCapabilityAwarenessModelofInterfirmRivalry:LikelihoodofAttackandResponsezymbaclass@hotmail.comRelativeSizeSpeedInnovationQualityAbilityforActionandResponseOutcomesDriversofCompetitiveBehaviorAwarenessMotivationCapabilityCompetitorAnalysisMarketCommonalityResourceSimilarityInterfirmRivalry:Attack&ResponseLikelihoodofAttackFirstMoverIncentivesLikelihoodofResponseTypeofCompetitiveActionDependenceontheMarketResourceAvailabilityActor’sReputationCompetitiveSlow,StandardorFastCycleMarketTypesCompetitiveSustainedOutcomesCompetitiveAdvantageTemporaryAdvantageEvolutionaryOutcomesEntrepreneurialorMarket-PowerGrowth-OrientedActionsFeedbackModelofInterfirmRivalry:LikelihoodofAttackandResponsezymbaclass@hotmail.comCompetitorAnalysisResourceSimilarityMarketCommonalityModelofInterfirmRivalry:LikelihoodofAttackandResponseDofirmscompetewitheachotherinmultiplemarkets?MarketCommonalityzymbaclass@hotmail.comCompetitorAnalysisResourceSimilarityMarketCommonalityMultipointcompetitiontendstoreducecompetitiveinteractions,butincreasesthelikelihoodofresponsewhereinteractionoccursForexample,airlinespriceflightssimilarlybutrespondquicklywhencompetitorsintroducepromotionalpricesModelofInterfirmRivalry:LikelihoodofAttackandResponsezymbaclass@hotmail.comCompetitorAnalysisResourceSimilarityDocompetitorspossesssimilartypesoramountsofresources?MarketCommonalityModelofInterfirmRivalry:LikelihoodofAttackandResponsezymbaclass@hotmail.comCompetitorAnalysisResourceSimilarityMarketCommonalityFirmsarelessinclinedtoattackafirmthatislikelytoretaliateFirmswithdissimilarresourcesaremorelikelytoattackFirmswithsimilarresourcesaremorelikelytobeawareofeachother’scompetitivemovesModelofInterfirmRivalry:LikelihoodofAttackandResponsezymbaclass@hotmail.comRelativeSizeSpeedInnovationQualityAbilityforActionandResponseOutcomesDriversofCompetitiveBehaviorAwarenessMotivationCapabilityCompetitorAnalysisMarketCommonalityResourceSimilarityInterfirmRivalry:Attack&ResponseLikelihoodofAttackFirstMoverIncentivesLikelihoodofResponseTypeofCompetitiveActionDependenceontheMarketResourceAvailabilityActor’sReputationCompetitiveSlow,StandardorFastCycleMarketTypesCompetitiveSustainedOutcomesCompetitiveAdvantageTemporaryAdvantageEvolutionaryOutcomesEntrepreneurialorMarket-PowerGrowth-OrientedActionsFeedbackModelofInterfirmRivalry:LikelihoodofAttackandResponsezymbaclass@hotmail.comInterfirmRivalry:Attack&ResponseLikelihoodofAttackFirstMoverIncentivesLikelihoodofResponseTypeofCompetitiveActionDependenceontheMarketResourceAvailabilityActor’sReputationModelofInterfirmRivalry:LikelihoodofAttackandResponseLikelihoodofAttackFirstMoverIncentivesFirstMoveradvantagecanbesubstantialzymbaclass@hotmail.comFirstMoverFirmsthattakeaninitialcompetitiveactionGenerallypossesstheresourcesandcapabilitiesthatenablethemtobepioneersinnewproducts,newmarketsornewtechnologiesCanearnaboveaverageprofitsuntilcompetitorsrespondGaincustomerloyalty,helpingtocreateabarriertoentry