Chapter 5 - Competitive rivalry and competitive dynamics. Studying this chapter should provide you with the strategic management knowledge needed to: Define competitors, competitive rivalry, competitive behavior, and competitive dynamics; describe market commonality and resource similarity as the building blocks of a competitor analysis; explain awareness, motivation, and ability as drivers of competitive behavior;. | Chapter 5: Competitive Rivalry and Competitive Dynamics Overview: Competitors, competitive rivalry, competitive behavior and competitive dynamics Market commonality and resource similarity: Building blocks of competitor analysis Competitive actions: Awareness, motivation and ability Factors driving competitor’s competitive actions Competitor’s response to actions taken against it Competitive dynamics in slow, fast and standard-cycle markets From Competitors to Competitive Dynamics (Figure ) Introduction and Definitions Competitors Firms operating in the same market, offering similar products and targeting similar customers Competitive Rivalry Ongoing set of competitive actions and competitive responses occurring between competitors as they contend with each other for an advantageous market position Competitive Dynamics The total set of actions and responses of all firms competing within a market Competitive Rivalry Competitive Behavior (offensive and . | Chapter 5: Competitive Rivalry and Competitive Dynamics Overview: Competitors, competitive rivalry, competitive behavior and competitive dynamics Market commonality and resource similarity: Building blocks of competitor analysis Competitive actions: Awareness, motivation and ability Factors driving competitor’s competitive actions Competitor’s response to actions taken against it Competitive dynamics in slow, fast and standard-cycle markets From Competitors to Competitive Dynamics (Figure ) Introduction and Definitions Competitors Firms operating in the same market, offering similar products and targeting similar customers Competitive Rivalry Ongoing set of competitive actions and competitive responses occurring between competitors as they contend with each other for an advantageous market position Competitive Dynamics The total set of actions and responses of all firms competing within a market Competitive Rivalry Competitive Behavior (offensive and defensive) Set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position Competitive Action Strategic or tactical action firm takes to build or defend its competitive advantages or improve its market position Competitive Response Strategic or tactical action the firm takes to counter effects of a competitor's action Competitive Rivalry What are the strategic and tactical actions? Strategic actions/responses: market-based moves that signify a significant commitment of organizational resources to pursue a specific strategy Difficult to implement and reverse Tactical actions/responses: market-based moves that involve fewer resources to fine-tune a strategy that is already in place Easier to implement and reverse A Model of Competitive Rivalry (Figure ) Competitor Analysis and Competitive Rivalry Competitor Analysis (Chapter 2) Is the first step to understanding competitive .
