Chapter 5

Question 1

Explain who competitors for a firm are. How are competitive rivalry, competitive bahvior, and competitive dynamics defined in the chapter?

Answer 1

Competitors are: firms competing in the same market, offering similar products and targeting the similar customers

Competitive rivalry: Competitive actions and responses between the other firms
Competitive rivalry influences the firms ability to sustain its competitive advantage

Question 2

Explain how awareness, motivation, and ability affect the firms competitive behavior?

Answer 2

If a firm has enough awareness, motivation and ability it has more competitive behavior
E.g. first-mover (first with a competitive action) gain customers and above-avergae retunrs
Not all are first movers if they have alack of the mentioned aspects