Competitive
Complexity
•Short-Term Effects
•Long-Term Effects
•How to Foster It
Chapter 6
Supporting the Business-Level Strategy:
Competitive and Cooperative Moves
Types of Competitive Actions
Strategic
Tactical
Terms
• Competitors - Firms operating in the same market, offering similar
products and targeting similar customers
• Competitive Rivalry - Ongoing set of competitive actions and
competitive responses occurring between two competitors as they
contend with each other for an advantageous market position
• Competitive Dynamics - Total set of actions and responses of all
firms competing within a market
• Multimarket Competition - Firms competing against one another
in several product or geographic markets
Bricolage
Disruptive Innovations
Blue Ocean Strategy
First Mover?
Establish a Foothold
A small position that a company
intentionally establishes within a
market in which it does not yet
compete.
Responding To Competitors’ Moves : AMC
Aware
Motivated
Capable
Responding To Competitors’ Moves: Speed
Responding To Competitors’ Moves:
Mutual Forbearance
Making Cooperative Moves
•
In addition to competitive moves, companies can also benefit from
cooperating with each other
•
Cooperative moves, such as forming joint ventures and strategic alliances,
may allow companies to enjoy successes that might not otherwise be
reached because they:
– Share (rather than duplicate) resources
– Learn from each other’s strengths
Making Cooperative Moves: JVs
Making Cooperative Moves: Alliances
Making Cooperative Moves: Co-location