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[D] Competitive Dynamics, G3 (IPCM4 Tiffany, IBS4 Kai, BAITIA1 Aileen,…

- - - - Geography
      - Product
      - Demography
  - - - Tangible
      - Intangible
  - - - Perceive changes and competitive behaviors in the market.
    - - Have the motivation to take action.
    - - Have the resources and capability to take action.
  - - - First Mover
        
        Enter the market early to establish an advantage.
      - Late Mover
        
        Act after observing the market to avoid risks.
    - - Market Dependency
        
        Protect market share more proactively.
- - - - Analyze rivalry from each firm’s perspective
  - - - Compare firms pairwise along MC and RS
        
        prebattle relationship
        
        Competitive asymmetry
- - - - Market commonality primarily influences whether a company launches an attack or responds
    - - Resource similarity primarily affects attacks or responses
    - - Considered a prerequisite for any action
  - - - Likelihood of attack
        
        Mutual forbearance hypothesis
        
        Proposition la: All other things being equal, the greater the market commonality between B and A, the less likely A is to launch an attack against B
      - Likelihood of response
        
        Resource-dependence perspective
        
        Proposition Ib: All other things being equal.The greater the market commonality between A and B, the more likely B is to react to an attack from A
    - - Likelihood of attack
        
        The initiator will think twice before acting, avoiding attacks on competitors with similar strategic endowments
        
        Proposition 2a: The greater B's resource similarity with A, the less likely A is to initiate an attack against B, all else being equal
      - Likelihood of response
        
        Defenders that are most similar to the attacker in terms of strategic resource endowment will possess the greatest potential and capability to retaliate
        
        Proposition 2b: The greater A's resource similarity with B, the more likely B is to respond to A's attack, all else being equal
  - - - If A is B's main competitor, it does not necessarily mean that B is A's main competitor.
        
        Proposition 4a: Competitive asymmetry is likely to exist within a pair of competitors. That is, any two firms are unlikely to have identical degrees of market commonality and of resource similarity with each other
        
        Proposition 4b: Because of competitive asymmetry in market commonality and in resource similarity, the likelihood that A will attack B will differ from the likelihood that B will attack A. The same will hold true for response likelihood
  - - - e.g. Airline industry
        
        A similar mapping for AA shows that its most important competitor is United (UA), not Delta
- - - - how much two airlines compete in the same routes (markets)
        
        Airlines that share many routes and have similar planes are direct and strong competitors.
    - - how similar their strategic assets are (like aircraft type and fleet size)
  - - - senior airline executives
        
        Market commonality → 0.74
        Resource similarity → 0.59
        
        results showed a strong match meaning his measures are reliable and valid
      - industry experts
  - - - Business-level competition (e.g., airlines)
      - Corporate-level rivals (e.g., P&G vs. Unilever)
      - global competition
        
        Market overlap
  - - - Identify who your real rivals are
      - Predict how they might attack or respond in competition
      - combines Porter’s external/industry view and the resource-based internal view
        
        Porter (outside-in)
        
        :heavy_plus_sign:
        
        RBV (inside-out)

Competitive intensity

Market Commonality
Low

Market Commonality
Low

Market Commonality
High

Market Commonality
High