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Competitor Analysis and Interfirm Rivalry: Toward a Theoretical…

- - - - Pay limited attention to market contexts. :question:
    - - Airline
        industry
        
        Widely applied in strategy.
    - - Resource-by-resource basis
  - - - :star:Highlight and conceptualize competitors and predicting rivalry. :star:
        
        Inside-out
        
        Barney's Theory
        
        Resource-based theory
        
        Outside-in
        
        Porter's Theory
        
        Predict attack and response.
        
        The competition within an industry or at the business level.
        
        Point the concepts can be equally applied at the corporate level. :question:
        
        The act of rivalry
        
        First proposition
        
        Discuss action/response behavior.
        
        Different forces drive the behavior
        
        High market commonality
        
        with defender
        
        1 more item...
        
        with attacker
        
        1 more item...
        
        High resources similarity
        
        Gimeno and Woo's example
        
        1 more item...
        
        Cave and Porter's theory
        
        1 more item...
        
        Competitors Mappings
        
        Figure 3
        
        According to the threaten degree
        
        Allocate resources
        
        Competitive asymmetry
        
        Creating value for firms
  - - - Adding further complexity and richness
    - - Adding more focus on competitive asymmetry
- - - - Proposes measures to assess market commonality and resource similarity and demonstrates how to implement these measures
    - - Time：now & future
      - :red_flag:Scope：game&game
        
        1.Porter five forces analysis：Theoretical construction limited to the industrial level
    - - :red_cross:doesn't take differences between different competitors into account：Assume that the identities of competitors are known/ take competitors as undifferentiated entities
- - - - Predict
        
        likelihood of attack/response
  - - - a prerequisite for any move
    - - whether u want attack or response
    - - whether u can response or attack
    - - Market Commonality
        
        Affect
        
        Motivation
        
        Resource similarity
        
        Influence
        
        Capability
      - Increased
        
        Awareness
  - - - Market Commonality Versus Resource Similarity
        
        Proposition 3:
        Market commonality is a stronger predictor of
        competitive attack and response than is resource similarity.
        
        Market commonality is easier to see and assess than resource similarity
        
        The factors influencing a company's response
        
        💫Motive > capability
      - Defend perspective
        
        Proposition 2b:
        A's resource similarity with B⬆️
        B respond to A's attack.⬆️
        
        Firm's response determined mainly by response capability
        
        ⬆️ resource similarity
        response speed⬆️
      - Attack perspective
        
        the defender's potential response is matter.
        
        The higher the resource similarity,
        the more effective the response to an attack
        
        Proposition 2a:
        B's resource similarity with A⬆️
        A is to initiate an attack against B⬇️
    - - Proposition Ib:
        A's market commonality with B⬆️
        B is to respond to A's attack.⬆️
    - - Proposition la:
        B's market commonality with A, ⬆️
        A is to initiate an attack against B.⬇️
        
        The more alike you are, the greater the risk
- - - - the importance of strategies
      - competitor's strength
    - - competitive view
        
        how each firm has their advantages/ market power in each market
      - strategic view
        
        how each market play in different role toward a firm's whole market profile
  - - - similar
        
        similar strategic capabilities & vulnerabilites
      - diverse
        
        unique profiles
    - - constrain a firm's strategic choices
        
        affect actions & responses
  - - - firm's conductions
        
        the exchange of moves and countermoves
        
        actions/responses
      - general thoughts on properties or market structure
    - - individual competitive move
- - - - Applicable to competitive behavior at the firm level
      - A is like B" is not the same as "B is like A."
      - The assumption of symmetry in similarity.
    - - depend on the focal firm.
      - A may pose a greater threat to B than vice versa.
      - Unique and directional, not symmetrical
  - - - Competitor's Market Share in Shared Markets
      - Strategic Importance of Shared Markets
      - Competitor's Market Commonality
        
        Detailed Market-by-Market Study
        
        Normalized Results
        
        Sum of Market Commonality Indices for All Competitors = 1
    - - Vital Strategic Endowment: Fleet Structure
        
        Flying Distance
        
        Number of Passengers Carried
        
        Type of Engines Used
        
        Example
        
        Delta's Main Competitor: American (AA)
        
        Competitive Asymmetry
        
        A's Most Important Competitor: United (UA)