Research subject submission: December 5th Max Plagiarism: 18%

Competitive rivalry and competitive dynamics

 Competitors: Companies that offer similar products and services in the same market.
 Competitive behavior: How a company will compete against competition and there are
two types:
o Response: Defense
o Action: Attack
 Multimarket competition: When companies are in direct competition in different
markets.
 Competitive dynamics: Firms or companies who use competitive behavior to compete
in a market.

ROAD MAP:
Competition to competitive dynamics:
Competitors  (Engage in) Competitive rivalry  (why?) To gain advantage of Market
Position (How?) Through Competitive behavior  (what?) Competitive Dynamics.

1. Competitors: Companies want to get two important pieces of information from

competitor analysis:
 Market commonality: when two companies are competitors in two different
markets.
 Resource similarity: When competitors use similar resources
2. Competitive Rivalry Framework:
 Competitive analysis:
 Market commonality:
 Resource Similarity
 Motives of competitive behavior:
 Awareness: awareness about competitors (every single detail)
 Motivation:
 Ability: the capability to compete
 Likelihood of attacking:
 Quality: (Quality Dimension)
  Quality product dimension
a. Durability
b. Features
c. Aesthetic looks
d. Performance
e. Serviceability
f. Flexibility ( is it upgradable or not)
g. Conformity (authenticity)
h. Security
 Quality Service Dimension:
a. Speed/timeliness
b. Consistency
c. Conformance (authenticity)
d. Compellability
e. Convenience
 Price\cost
 First mover benefits
 Organizational size
 Likelihood of response:
 The type of competitor Action: all of the above like price quality and so
on.
 Actor reputation. If the company does not respond, it will affect its
reputation.
 Market dependence: if our response helps us sustain or retain our
position to generate more revenue or the opposite effect.
 Outcome:
 Market leadership position:
 Financial position:
3. Competitor Analysis Framework:
 Market commonality:
 Resource similarity:

High
Market Motorbike and car II Degree of Market
commonality Commonality.(pepsi/coca
cola) I
Samsung and apple IV
Low Resource Similarity High
4. Slow-cycle Market
 Takes a lot of time for them to imitate or copy the work of the competitor’s
resources capabilities and core competencies.
5. Fast-cycle Market
 Where the competitor can produce core competencies and resources and
capabilities quickly fashion on Industry is an example.
 Fast fashion: how fast can a company produce a product?
 Sustainable Fashion: Fast and eco-friendly.
6. Standard-cycle Market:
 Competitors can only partially imitate the company ( initial version)