Exam 2 Flashcards
Competitive rivalry
is the ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position
competitive behavior
set of competitive actions and responses a firm takes to build/ defend its competitive advantages and to improve its market position
multimarket competition
occurs when firms compete against each other in several product or geographic markets
competitive dynamics
all competitive behaviors - set of actions/responses taken by all firms competing within a market
market commonality
number of markets in which firms compete against each other and the degree of importance of the individual markets to each
resource similarity
the firm’s tangible and intangible resources compared to a competitors in terms of type and amount.
competitive action
strategic or tactical action a 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 the effects of a competitor’s competitive action
tactical action or tactical response
market-based move taken to fine-tune a strategy, involves fewer resources and easy to implement and reverse
first mover
firm that takes an initial competitive action in order to build or defend its competitive advantage or to improve its market position
second mover
firm that responds to the first mover’s competitive action, typically through imitation
late mover
firm that responds to a competitive action a significant amount of time after the first mover’s action and the second mover’s response
product quality dimension
performance features flexibility durability conformance serviceability aesthetics perceived quality
Service quality dimensions
timeliness courtesy consistency convenience completeness accuracy
slow-cycle market
firm’s competitive advantages are shielded from imitation for long periods of time and where imitation is costly
fast-cycle markets
firm’s capabilities that contribute to competitive advantages aren’t shielded from imitation and where imitation is rapid and inexpensive
standard-cycle markets
firms competitive advantages are partially shielded from imitation and imitation is moderately costly
organizational slack
buffer provided by actual or obtainable resources that aren’t currently in use and are in excess of the minimum resources needed to produce a given level of organizational output
factors affecting likelihood a competitor will attack its competitor
first-mover benefits, organizational size, and quality
factors affecting likelihood a competitor will respond
awareness, motivation, ability, type of competitive action, actors reputation, market dependence
corporate level strategy
specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets
market power
exists when a firm is able to sell its products above the existing competitive level or to reduce the costs of its primary and support activities below the competitive level, or both.
financial economies
are cost savings realized through improved allocations of financial resources based on investments inside or outside the firm.
Synergy
exists when the value created by business units working together exceeds the value that those same units create working independently.
acquisition
is a strategy through which one firm buys a controlling, or 100 percent, interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio.
merger
is a strategy through which two firms agree to integrate their operations on a relatively coequal basis.
takeover
is a special type of acquisition where the target firm does not solicit the acquiring firm’s bid; thus, takeovers are unfriendly acquisitions.
