Ch 5 Part 1 Flashcards
What is the Competitive behavior?
Competitive behavior is the set of competitive actions and responses a firm takes to build or defend its competitive advantages and to improve its market position.
What is Multimarket competition?
Multimarket competition occurs when firms compete against each other in several product or geographic markets.
What is Competitive dynamics?
Competitive dynamics is the total set of competitive actions and responses taken by all firms competing within a market.
Model of Competitive Rivalry suggests that:
?
• Firms are mutually interdependent.
• Competitors’ actions and responses affect them.
Marketplace success is a function of both:
• Individual strategies
• The consequences of their use
What is the competitor analysis in Model of Competitive Rivalry?
- Market commonality
- Resource similarity
What is the (Drivers of Competitive Behavior) in Model of Competitive Rivalry?
- Awareness
- Motivation
- Ability
What is the outcomes of Model of Competitive Rivalry?
- Market position.
- Financial performance.
What is the first step the firm takes to be able to predict its competitors’
actions and responses.
competitor analysis
Competitor analysis is a technique firms use to understand their competitive environment by
studying competitors’:
?
• Future objectives
• Current strategies
• Assumptions
• Capabilities
To complete a competitor analysis, firms study:
- Market commonality
- Resource similarity
…….. ……………. is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.
Market commonality
Firms competing against one another in several markets engage in……… ………. .
multimarket competition
In general, multimarket competition (reduces or increase) competitive rivalry,
but some firms will still compete when the potential rewards (e.g., potential market share gain) are high.
Reduces
……….. ………….. is the extent to which the firm’s tangible and intangible resources compare favorably to a competitor’s in terms of type and amount.
Resource similarity
Firms with similar types and amounts of resources tend to:
- Have similar strengths and weaknesses.
- Use similar strategies in light of their strengths to pursue what may be similar opportunities in the external environment.
Market commonality and resource similarity shape the firm’s:
Awareness
Motivation
Ability
Ability refers to the quality of the resources available to the firm to
attack and respond.
• Without available resources (such as …………. capital and ………..), the
firm is not able to attack a competitor or respond to its action.
financial capital and people
A ……….. ……….. or a ……….. ……….. is a market-based move that involves a significant commitment of organizational resources and is difficult to implement and reverse.
strategic action or a strategic response
A …….. ……. or a ……… ………. is a market-based move that firms take to fine-tune a strategy; these actions and responses involve fewer resources and are relatively easy to implement and reverse.
tactical action or a tactical response
……. ………. is a strategic or tactical action the firm takes to build or defend its competitive advantages or improve its market position.
competitive action
…….. ………. is a strategic or tactical action the firm takes to counter the effects of a competitor’s competitive action.
competitive response
In addition to market commonality, resource similarity, and the drivers of awareness, motivation, and ability, three more specific factors affect the likelihood a competitor will take competitive actions:
- First-mover benefits
- Organizational size
- Quality
….. ……. is a firm that takes an initial competitive action to build or defend its competitive advantages or to improve its market position.
first mover
First movers emphasize ……… and ……….. as a path to developing innovative products that customers will value.
research and development
First-mover benefits are often critical to a firm’s success in industries:
• Experiencing rapid technological developments
• With relatively short product life cycles
In addition to earning above-average returns until its competitors respond to its successful competitive action, the first mover can gain:
• The loyalty of customers
• Market share
Tesla is first mover?
T OR F
True
First movers tend to:
• Be aggressive
• Be willing to experiment with innovation
• Take higher yet reasonable levels of risk
To be a first mover, the firm must have the readily available resources to:
• Invest significantly in R&D
• Rapidly and successfully produce and market stream of innovative products
………… ….. makes it possible for firms to have the ability to be first movers.
Organizational slack
معلومه:
عنده موارد اكثر من ما يستخدم ال exses capasity
What is Slack
Slack is the buffer provided by actual or obtainable resources not in use currently and that exceed the minimum resources needed to produce a given level of organizational output.
Who is the second mover?
A second mover is a firm that responds to the first mover’s competitive action, typically through imitation
The second mover:
• Studies customers’ reactions to product innovations
• Tries to find any mistakes the first mover made so that it can avoid them and the problems they created
• Has the time to develop processes and technologies that:
• Are more efficient than those the first mover used
• Create additional value for consumers
second move Hasn’t the time to develop processes and technologies that Are more efficient than those the first mover used
T or F ?
T
The most successful second movers can interpret market feedback with precision in order to respond quickly yet successfully to first movers’ successful innovations.
True or false?
True
Who is the late mover ?
late mover is a firm that responds to a competitive action a significant amount of time after the first mover’s action and the second mover’s response.
Late movers is :
1-
2-
• Achieve considerably less success than do first and second movers
• Require considerable time to understand how to create at least as much customer value as that offered by the first and second movers’ products
late movers typically only earn average returns ?
T or F
True
