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CDPSG2 [S3] C10-Competitor-Analysis-and-Interfirm-Rivalry (SRL): Toward A…

- - - - Multimarket Contact
        (Competitive/Focal market)
        
        Aggregate Properties (Firm/Market)
        Price charged,
        Firm performance
        Market stability
        (Indirect relation to rivals)
      - Shared Markets
        
        Different Set/Intensity of competition
      - Market Interdependence
        
        The idea of competitive asymmetry
        Mutuality and Symmetry
      - Degree of presence
        of a competitor
        
        Strategic importance to the focal firm
        Competitor's Strength
    - - Tangible/Intangible resources and capabilities
        
        are different
        are heterogeneously distributed
      - Competitive
        Position and Advantage
        
        are different
        are heterogeneously distributed
      - Resource endowments
        
        Strategic choices
      - Comparable strategic endowments of competitor
        
        Similar resource bundles means
        similar strategic capabilities/
        competitive vulnerability
- - - - Mab= Market Commality that airline b has with the focal airleine a;
        Pai= Number of passengers served by a in route i;
        Pa= Number of passengers served by a across all routes;
        Pbi= Number of passengers served by b in route i;
        Pi=Number of passengers served by all lines in i;
        i= A route, among the top 2,000 routes, served by both a=b.
  - - - Population Ecology (Barnett, 1993) and Network Theor (Burt, 1987)
  - - - Strategic Commitment (Ghemawat, 1991)
      - Bluffs (Porter, 1980)
      - Market Signals (Heil & Robertson, 1991)
      - Speed of decision making (Eisenhardt, 1989)
      - Competititve (de-) escalation (D'Aveni, 1994)
      - Market entry & exit (Baum & Korn, In press)
  - - - Ultimate Goal on building a predictive theory of behavior
- - - - Tversky's Competitive Asymmetry formula： d(a,b) # d(b,a) "A is like B" is not the same as "B is like A"
      - triangle inequality A vs B, B vs C, A maybe not vs C
- - - - Market relationship
    - - Market relationship
    - - Strategy and resources
- - - - Interfirm Rivalry:
        Competitive Action and Response
        
        Competitive Action
        
        A specific competitive move
        (Introducing a new product/
        Entering a new market)
        
        Intensity/Speed/Ability to predict
        competitors' actions and reactions
        
        Competitive Response
        
        A specific countermove to defend or improve its share or profit position
        
        Outcome
        (Organizational Performance/Effects of Rivalry)
        
        Proposition 1a:
        The greater B's market commonality with A,
        the less likely A is to initiate an attack against B
        
        Proposition Ib:
        The greater A's market commonality with B,
        the more likely B is to respond to A's attack
- - - - Common strengths / weaknesses
        
        Know your enemy and know yourself 知己知彼，百戰不殆
  - - - Resource-based theory