Competitors analysis and interfirm rivalry
G2
IBS 3 Cathy
Competitors analysis
Purpose
To understand and predict the rivalry
Many different tools
Strategic-group approach
Porter’s five forces
Conciusion
DFLL 4 Evelyn
Competitive analysis 📝
Series of actions & responses to the competitors' behaviors ⚔
To understand the competitors' acts in the game 👤
Predict the rivary 💡
Partnership 👥
Complementors
Competitiors
To know how to explain others' market behavior
Each market is unique
Market commonality
Multimarket contact
IBS M2 Brianna
Illustration
Market commonality
Resource similarity
Trans World Airlines - TW
v.s.
American Airlines - AA
America West Airlines - HP(454)
v.s.
Southwest Airlines - WN (308)
The quantity of shared markets might not entirely represent the intensity of market competition.
Competitive asymmetry
Analyzing competitors from multiple vantage points
Rivals' rivals
Questions of the firms❓
How to find competitors
What to do after finding the competitors
Analyze your situation& use different strategies
Resource similarity
To examine the competitive environment and the rivalry among competitors within an industry
A theoretical construct
The most popular and relevant method now
Overlooked the market context and the extent of direct competition between two firms
Some rely on managers' or researchers' subjective perceptions
Distinguish who are competitors
Competitive Action and Response
Attack
A series of actions and response
AMC
Decide attack/response or not
Evaluate the relationship with competitors
Capability
Awareness
Is it possible to retaliate?
Some may not pose an equal threat to each other
Determines two firms are direct and immediate competitors or not
It's a firm-specific analysis
Different resources and asset
Offer similar products or services
The relationships between firms are not symmetrical
May be consider as a primary competitor
Competitive tension
Competitive tension between firms
The potential of these two firms for engaging in competition
AA (415) v.s. HP (454)
Strategies
Top-down approach⬇️
Strategic capabilities and resource transferabilities
Bottom-up approach⬆️
Customer market requirements
Notice the links between games
Market relationship
Motivation
Strategic or resource endowments
The intensity of competition
Strategic importance to the focal firm of the shared markets
The extent to which a given competitor possesses strategic endowments comparable
Competitive advantage
Introduce a new product or enter a new market
First-mover advantage
The result most depends on defenders' responses
Competitive is dynamic and interactive nature
Compare the defender's overall market and resource profiles
SDEI M2 Antony
Propositions
Market Commonality
&
Interfirm Rivalry
All else being equal
Greater market commonality
Less likely to attack
Proposition 1a
More likely to respond
Proposition 1b
Resource Similarity
&
Interfirm Rivalry
All else being equal
Greater resource similarity
Less likely to attack
Proposition 2a
More likely to respond
Proposition 2b
Market Commonality
VS
Resource Similarity
To Predictor of competitive attack and response
Market Commonality is Better
Proposition 3
Competitive Asymmetry
&
Interfirm Rivalry
Competitive Asymmetry
Exist within any pair of competitors
Proposition 4a
Impossilbe to have same market commonality and of resource similarity
The % of one to
attack / respond
another is not the same
Proposition 4b
The likelihood that A will attack B will differ from the likelihood that B will attack A
The likelihood that A will respond B will differ from the likelihood that B will respond A
I know what you do and what you want and you know what I will do either