BUSI 4609 Chapter Notes - Chapter 5: Competitor Analysis
7 May 2018
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Chapter 5
Strategic action: involve commitment resource and hard to implement
Tactical action: fine tune strategy
Competitor competitor rivalry competitive dynamic
Competitive action: defend CA
Competitive response: counter effect of Competitive action
Competitive behavior: action + response
Competitive dynamic: total action + response by all firm in 1 market
Competitive rivalry
▪ High during recession
▪ Firm are mutually interdependent
1. model of competitive rivalry
2. competitor analysis
Competitive rivalry
Competitive dynamic
a. market commodity
b. resource similarity
c. 1st mover incentive
d. aware, motivate, ability
e. market speed
f. effect of market speed
3. driver of competitive behavior
a. awareness: high if similar resource
b. motivation: incentive to take action
c. ability: flexible resource
d. market commonality
e. resource dissimilarity
4. likelihood of attack
a. 1st mover incentive
i. take initial action to build CA
ii. method
o advanced R&D
o aggressive advantage
iii. pro
o customer loyalty
o cost advantage
o secure market share
iv. con
competitor analysis
deiver of
comeptitive
behavior
Competitive
rivalry outcome
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