Please enable JavaScript.
Coggle requires JavaScript to display documents.
Competitive Dynamics & Co-opetition, predict competitor reactions,…
Competitive Dynamics & Co-opetition
COMPETITOR ANALYSIS
Market Commonality
The common denominator between you and your competitors
Competitor with more similarities with you is your biggest rival
Overlaps
Mutual Forbearance
7-ELEVEN
100% overlap
FamilyMart
Company A 80% overlap with Company B and 40% overlap with Company C
Resource Similarity
Even if a firm isn't fighting you now, similar resources mean it can enter your market next
They can have what you also have
Ex. China Airlines Owns A330s/A350s, so it could fly Taipei-Ho Chi Minh City any time, even though EVA Air flies it today
Ex. Coca-Cola's Barq Root Beer & PepsiCo's Mug Root Beer
Tactical Actions
Small, cheap, easy to reverse
Ex. Price change
3. The AMC framework
AWARENESS
MOTIVATION
CAPABILITY
Do they have resources or ability to respond?
Can I have enough resources
and ability to respond?
Will they care enough to respond?
Do I have reasonto respond?
Will competitors notice it?
Do I notice
competitor’s move?
Why?
Limits of traditional models
Porter’s 5 Forces/ Low-cost/ Differentiation/ Focus strategy
too static & simplified
Strategic planning tool
Avoid Direct Competition
Choose actions
unmotivated
unable to counter
unaware
Set a Strategic Trap
deliberately provoke rival's respond
wrong decisions
Co-opetition
Strategic Alliances
Cooperation between firms, including competitors.
Share resources and create mutual benefits.
EX:Airline code-sharing
Value Net & Complementors
Participants in Five Forces
Suppliers
Competitors
Customers
Complementors
firm can be both a competitor and a complementor.
Complementors
increase the value
Game Theory
Outcomes depend on your choices and others’ responses
One-shot & Repeated
Balance collective value creation with individual gains
PARTS Framework
R — Rules
Understand how the game operates.
Explore opportunities to influence the rules.
T — Tactics
Shape perceptions through information and actions.
A — Added Value
Build a contribution others cannot easily replace.
S — Scope
Examine the game’s boundaries and connections.
P — Players
Identify all relevant participants.
Conclusion
Competitive Advantage
Not a position you hold
Accumulated Results
of every action & response
Rivals
Partners
Suppliers
Customers
PIE
Cooperate
to
Expand
Compete
to
Divide
Think dynamic, not static
Forecast AMC
predict competitor reactions
responds only have AMC
at the same time.
design more effective strategic actions
any element is missing:
=> Response: weak/ delayed/ absent
How do they respond?
Helena
Goal:
Reduce the chance of a response
Goal:
Use competitors’ reactions to your advantage
Adam