CompetitiveDynamics43947.pptx

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1、Ch5-1Chapter 5Chapter 5Competitive DynamicsCompetitive DynamicsCh5-2Chapter 3Chapter 3InternalInternalEnvironmentEnvironmentChapter 2Chapter 2ExternalExternalEnvironmentEnvironmentThe StrategicManagementProcessStrategic IntentStrategic IntentStrategic MissionStrategic MissionStrategicStrategicCompet

2、itivenessCompetitivenessAbove AverageAbove AverageReturnsReturnsFeedbackStrategy FormulationStrategy FormulationChapter 4Chapter 4Business-LevelBusiness-LevelStrategyStrategyChapter 5Chapter 5CompetitiveCompetitiveDynamicsDynamicsChapter 6Chapter 6Corporate-LevelCorporate-LevelStrategyStrategyChapte

3、r 8Chapter 8InternationalInternationalStrategyStrategyChapter 9Chapter 9CooperativeCooperativeStrategiesStrategiesChapter 7Chapter 7Acquisitions&Acquisitions&RestructuringRestructuringStrategy ImplementationStrategy ImplementationChapter 10Chapter 10CorporateCorporateGovernanceGovernanceChapter 11Ch

4、apter 11StructureStructure&Control&ControlChapter 12Chapter 12StrategicStrategicLeadershipLeadershipChapter 13Chapter 13EntrepreneurshipEntrepreneurship&Innovation&InnovationStrategicInputsStrategicActionsStrategic OutcomesCh5-3Declining emphasis on single,domestic markets and Declining emphasis on

5、single,domestic markets and increasing emphasis on global marketsincreasing emphasis on global marketsAdvances in communication technology make Advances in communication technology make coordination easier across multiple marketscoordination easier across multiple marketsAdvances in technology and i

6、nnovation have increased Advances in technology and innovation have increased competitiveness of small and medium sized firmscompetitiveness of small and medium sized firmsNational barriers are falling due to the number and National barriers are falling due to the number and scope of trade agreement

7、s(GATT,NAFTA,EEC)scope of trade agreements(GATT,NAFTA,EEC)Factors Leading to More Complex RivalryFactors Leading to More Complex RivalryCh5-4Competitive DynamicsResults from a series of competitive actions and Results from a series of competitive actions and competitive responses among firms competi

8、ng within competitive responses among firms competing within a particular industrya particular industryCompetitive RivalryCompetitive RivalryExists when two or more firms jockey with one another Exists when two or more firms jockey with one another in the pursuit of better market positionin the purs

9、uit of better market positionCh5-5Actions and Actions and responses shape the responses shape the competitive positions competitive positions of each firms of each firms business level business level strategystrategyActions taken Actions taken by one firm by one firm elicit responses elicit response

10、s from from competitorscompetitorsA firms A firms strategic conduct strategic conduct is dynamic in is dynamic in naturenatureCompetitive Competitive responses lead responses lead to additional to additional actions from the actions from the firm that acted firm that acted originallyoriginallyCompet

11、itive DynamicsCh5-6Relative SizeSpeedInnovationQualityAbility for Ability for Action and Action and ResponseResponseOutcomesOutcomesDrivers of Drivers of Competitive Competitive BehaviorBehaviorAwarenessMotivationCapabilityCompetitor Competitor AnalysisAnalysisMarketCommonalityResourceSimilarityInte

12、rfirm Rivalry:Interfirm Rivalry:Attack&ResponseAttack&ResponseLikelihood of AttackLikelihood of AttackFirst Mover IncentivesLikelihood of ResponseLikelihood of ResponseType of CompetitiveActionDependence on theMarketResource AvailabilityActors ReputationCompetitiveCompetitiveSlow,Standardor Fast Cyc

13、leMarket TypesMarket TypesCompetitiveCompetitiveSustainedOutcomesOutcomesCompetitiveAdvantageTemporaryAdvantageEvolutionaryEvolutionaryOutcomesOutcomesEntrepreneurialor Market-PowerGrowth-OrientedActionsFeedbackFeedbackModel of Interfirm Rivalry:Likelihood of Attack and ResponseCh5-7Drivers of Compe

14、titive BehaviorMotivationCapabilityAwarenessModel of Interfirm Rivalry:Likelihood of Attack and ResponseDo managers understand Do managers understand the key characteristics of the key characteristics of competitors?competitors?AwarenessAwarenessCh5-8Does the firm have appropriate incentives to atta

15、ck or respond?Drivers of Competitive BehaviorMotivationMotivationCapabilityAwarenessModel of Interfirm Rivalry:Likelihood of Attack and ResponseCh5-9Does the firm have the necessary resources to attack or respond?Drivers of Competitive BehaviorMotivationCapabilityCapabilityAwarenessModel of Interfir

16、m Rivalry:Likelihood of Attack and ResponseCh5-10Relative SizeSpeedInnovationQualityAbility for Ability for Action and Action and ResponseResponseOutcomesOutcomesDrivers of Drivers of Competitive Competitive BehaviorBehaviorAwarenessMotivationCapabilityCompetitor Competitor AnalysisAnalysisMarketCom

17、monalityResourceSimilarityInterfirm Rivalry:Interfirm Rivalry:Attack&ResponseAttack&ResponseLikelihood of AttackLikelihood of AttackFirst Mover IncentivesLikelihood of ResponseLikelihood of ResponseType of CompetitiveActionDependence on theMarketResource AvailabilityActors ReputationCompetitiveCompe

18、titiveSlow,Standardor Fast CycleMarket TypesMarket TypesCompetitiveCompetitiveSustainedOutcomesOutcomesCompetitiveAdvantageTemporaryAdvantageEvolutionaryEvolutionaryOutcomesOutcomesEntrepreneurialor Market-PowerGrowth-OrientedActionsFeedbackFeedbackModel of Interfirm Rivalry:Likelihood of Attack and

19、 ResponseCh5-11Competitor AnalysisResource SimilarityMarket CommonalityModel of Interfirm Rivalry:Likelihood of Attack and ResponseDo firms compete with each Do firms compete with each other in multiple markets?other in multiple markets?Market Market CommonalityCommonalityCh5-12Competitor AnalysisRe

20、source SimilarityMarket Market CommonalityCommonalityMultipoint competition tends to Multipoint competition tends to reduce competitive interactions,but reduce competitive interactions,but increases the likelihood of response increases the likelihood of response where interaction occurswhere interac

21、tion occursFor example,airlines price flights For example,airlines price flights similarly but respond quickly when similarly but respond quickly when competitors introduce promotional competitors introduce promotional pricespricesModel of Interfirm Rivalry:Likelihood of Attack and ResponseCh5-13Com

22、petitor AnalysisResource Resource SimilaritySimilarityDo competitors possess similar types or amounts of resources?Market CommonalityModel of Interfirm Rivalry:Likelihood of Attack and ResponseCh5-14Competitor AnalysisResource Resource SimilaritySimilarityMarket CommonalityFirms are less inclined to

23、 attack a Firms are less inclined to attack a firm that is likely to retaliatefirm that is likely to retaliateFirms with dissimilar resources Firms with dissimilar resources are more likely to attackare more likely to attackFirms with similar resources are Firms with similar resources are more likel

24、y to be aware of each more likely to be aware of each others competitive movesothers competitive movesModel of Interfirm Rivalry:Likelihood of Attack and ResponseCh5-15Relative SizeSpeedInnovationQualityAbility for Ability for Action and Action and ResponseResponseOutcomesOutcomesDrivers of Drivers

25、of Competitive Competitive BehaviorBehaviorAwarenessMotivationCapabilityCompetitor Competitor AnalysisAnalysisMarketCommonalityResourceSimilarityInterfirm Rivalry:Interfirm Rivalry:Attack&ResponseAttack&ResponseLikelihood of AttackLikelihood of AttackFirst Mover IncentivesLikelihood of ResponseLikel

26、ihood of ResponseType of CompetitiveActionDependence on theMarketResource AvailabilityActors ReputationCompetitiveCompetitiveSlow,Standardor Fast CycleMarket TypesMarket TypesCompetitiveCompetitiveSustainedOutcomesOutcomesCompetitiveAdvantageTemporaryAdvantageEvolutionaryEvolutionaryOutcomesOutcomes

27、Entrepreneurialor Market-PowerGrowth-OrientedActionsFeedbackFeedbackModel of Interfirm Rivalry:Likelihood of Attack and ResponseCh5-16Interfirm Rivalry:Attack&ResponseLikelihood of AttackLikelihood of AttackFirst Mover IncentivesLikelihood of ResponseLikelihood of ResponseType of CompetitiveActionDe

28、pendence on theMarketResource AvailabilityActors ReputationModel of Interfirm Rivalry:Likelihood of Attack and ResponseLikelihood of AttackLikelihood of AttackFirst Mover IncentivesFirst Mover IncentivesFirst Mover advantage can be substantialCh5-17First MoverFirms that take an initial competitive a

29、ctionFirms that take an initial competitive actionGenerally possess the resources and capabilities that Generally possess the resources and capabilities that enable them to be pioneers in new products,new enable them to be pioneers in new products,new markets or new technologiesmarkets or new techno

30、logiesCan earn above average profits until competitors Can earn above average profits until competitors respondrespondGain customer loyalty,helping to create a barrier to Gain customer loyalty,helping to create a barrier to entry by competitorsentry by competitorsAdvantage depends upon difficulty of

31、 imitationAdvantage depends upon difficulty of imitationCh5-18Second MoverFirms that respond to a First Movers actionsFirms that respond to a First Movers actionsSecond Movers frequently imitate First MoversSecond Movers frequently imitate First MoversSpeed of response often dictates successSpeed of

32、 response often dictates successShould evaluate customers response before movingShould evaluate customers response before moving“Fast”Second Movers can capture some of Fast”Second Movers can capture some of initial customers and develop some brand loyaltyinitial customers and develop some brand loya

33、ltyAvoid some of the risks associated with First MoveAvoid some of the risks associated with First MoveMust possess necessary capabilities to imitateMust possess necessary capabilities to imitateCh5-19Interfirm Rivalry:Attack&ResponseLikelihood of AttackLikelihood of AttackFirst Mover IncentivesFirs

34、t Mover IncentivesLikelihood of ResponseLikelihood of ResponseType of CompetitiveType of CompetitiveActionActionDependence on theDependence on theMarketMarketResource AvailabilityResource AvailabilityActors ReputationActors ReputationWhether a competitor is likely to respond depends on several key f

35、actorsModel of Interfirm Rivalry:Likelihood of Attack and ResponseCh5-20TacticalTacticalActionsActionsMajor AcquisitionExampleExampleTypes of Competitive ActionsTypes of Competitive ActionsStrategic Strategic ActionsActionsPrice cutExampleExampleSignificant commitments of specific and Significant co

36、mmitments of specific and distinctive organizational resourcesdistinctive organizational resourcesDifficult to implementDifficult to implementDifficult to reverseDifficult to reverseRelatively easy to implementRelatively easy to implementRelatively easy to implementRelatively easy to reverseRelative

37、ly easy to reverseRelatively easy to reverseUndertaken to“fine tune”strategyUndertaken to“fine tune”strategyUndertaken to“fine tune”strategyCh5-21Gauging the Likelihood of ResponseActors ReputationMarket leaders are more likely to be copiedMarket leaders are more likely to be copiedMarket leaders ar

38、e more likely to be copied“Risk taking”firms are less likely to be copiedRisk taking”firms are less likely to be copiedRisk taking”firms are less likely to be copied“Price Predators”are less likely to be copied Price Predators”are less likely to be copied Price Predators”are less likely to be copied

39、 Type of Competitive Action-Tactical or StrategicType of Competitive Action-Tactical or StrategicEasier to respond toEasier to respond toRequire fewer resources to mount a responseRequire fewer resources to mount a responseCh5-22Market DependenceCompetitor ResourcesSmaller firms are more likely to r

40、espond to tactical Smaller firms are more likely to respond to tactical Smaller firms are more likely to respond to tactical actionsactionsactionsLimited resources may lead to alternatives such as Limited resources may lead to alternatives such as Limited resources may lead to alternatives such as S

41、trategic AlliancesStrategic AlliancesStrategic AlliancesGauging the Likelihood of ResponseFirms that are more dependent on a single industry are Firms that are more dependent on a single industry are more likely to respond than are diversified firmsmore likely to respond than are diversified firmsIn

42、dustry dependent firms will likely respond to Industry dependent firms will likely respond to either strategic or tactical actionseither strategic or tactical actionsCh5-23Relative SizeSpeedInnovationQualityAbility for Ability for Action and Action and ResponseResponseOutcomesOutcomesDrivers of Driv

43、ers of Competitive Competitive BehaviorBehaviorAwarenessMotivationCapabilityCompetitor Competitor AnalysisAnalysisMarketCommonalityResourceSimilarityInterfirm Rivalry:Interfirm Rivalry:Attack&ResponseAttack&ResponseLikelihood of AttackLikelihood of AttackFirst Mover IncentivesLikelihood of ResponseL

44、ikelihood of ResponseType of CompetitiveActionDependence on theMarketResource AvailabilityActors ReputationCompetitiveCompetitiveSlow,Standardor Fast CycleMarket TypesMarket TypesCompetitiveCompetitiveSustainedOutcomesOutcomesCompetitiveAdvantageTemporaryAdvantageEvolutionaryEvolutionaryOutcomesOutc

45、omesEntrepreneurialor Market-PowerGrowth-OrientedActionsFeedbackFeedbackModel of Interfirm Rivalry:Likelihood of Attack and ResponseCh5-24Relative SizeQualityInnovationSpeedAbility for Action and ResponseModel of Interfirm Rivalry:Likelihood of Attack and ResponseRelative SizeRelative SizeFirm size

46、can have Firm size can have opposing effects on opposing effects on competitive dynamicscompetitive dynamicsCh5-25QualitySpeedLarge firms may exert market power Large firms may exert market power over rivals and erect barriers to over rivals and erect barriers to entry against smaller competitorsent

47、ry against smaller competitorsHowever,smaller competitors However,smaller competitors may be more nimble and may be more nimble and innovativeinnovativeAbility for Action and ResponseRelative SizeRelative SizeInnovationModel of Interfirm Rivalry:Likelihood of Attack and Response“Think and act big an

48、d well get Think and act big and well get smaller.Think and act small smaller.Think and act small and well get bigger.”and well get bigger.”-Herb Kelleher,Herb Kelleher,CEO,Southwest Airlines CEO,Southwest AirlinesCh5-26Relative SizeQualityInnovationSpeedSpeedQuick response is crucial to both the fi

49、rst mover and the fast second moverAbility for Action and ResponseModel of Interfirm Rivalry:Likelihood of Attack and ResponseCh5-27Consistent innovation is required for market leadership in many dynamic industries Ability for Action and ResponseRelative SizeQualityInnovationInnovationSpeedModel of

50、Interfirm Rivalry:Likelihood of Attack and ResponseCh5-28Exceeding customer expectations is a necessity to compete in the 21st centuryAbility for Action and ResponseRelative SizeQualityQualityInnovationSpeedModel of Interfirm Rivalry:Likelihood of Attack and ResponseCh5-29Quality Dimensions of Goods