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6 COMPETITIVE
DYNAMICS (COMPETITIVE
SIGNALLING
Capture (Benefits…
6 COMPETITIVE
DYNAMICS
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COMPETITIVE
SIGNALLING
Definition: Competitive market signals are announcements or previews of potential actions intended to convey information or to gain information from competitors
Benefits
- Barriers to entry, credibility of commitment, dominance
- Pre-emption of a new technology, market, plant capacity
- Norms for pricing, advertising/sales ratio, discount levels
- Implicitly understood "rules" that guide competitive interaction
- Discourage competitors from following
Elements of Framework
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Signal Interpretation + Firm, market, industr
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RESPONSE DYNAMICS
FIRST-MOVER
ADVANTAGE
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Environmental Change
Firm proficiency - First mover opportunity - Luck
Mechanisms for enhancing first mover advantage
Profits
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