S11: Rivalry & Dynamics Flashcards
What is market commonality?
It’s the nb of markets in which a firm and a competitor are both involved
When does multimarket competition occur?
When firms compete one against another in many markets (ex: car industry: different brands compete in different car markets)
What is resource similarity?
How similar a firm’s resources are to a competitor’s
What does it mean when firms have similar types of resources?
They have similar strengths and weaknesses + similar strategies
What is the relationship between resource similarity & intangible resources?
It is harder for firms to have similar intangible resources compared to tangible ones
What’s the relation if: high market commonality & low resource similarity?
Indirect competitors
What’s the relation if: high market commonality & high resource similarity?
Direct competitors
What’s the relation if: low market commonality & low resource similarity?
No competition
What’s the relation if: low market commonality & high resource similarity?
Potential competitors
What does it take to be a first mover? (2)
- Invest significantly in R&D
- Rapidly make innovative products
