individual assignment

Today’s learning objectives

· Understanding the competitors and competitive behaviour

· Define, describe and analyse competitive behaviour

· Understand how to use models to analyse competitive behaviour and interactions

Agenda

· Competitors

· AMC

· Break

· Competitive dynamics

· Competitive blind spots

Competition

· Industry vs strategic group vs firm

· Industry

· Nr of firms

· Concentration

· Strategic groups

· Who are the relevant firms in the industry?

· Firm

· Who are competitors?

· How to compete?

The roots of competitive strategy

The classics

Some managerial takes

Competitors

• Competitors: Firms operating in the same market, offering similar products and targeting similar customers

Easton, G. (1988). Competition and marketing strategy.

European Journal of Marketing,

Clark, BH. & Montgomery DB (1999). Journal of Marketing, 63, Page 72. Managerial Identification of Competitors. 22(2), Page 33.

Competitor analysis

· Same markets

· Market focus vs industry focus

· Market overlap and importance • Similar resources

· In terms of types and amounts

AMC framework

(Cap)ability

· Awareness

· Does the competitor know you are there?

· Motivation

Motivation

· Does the competitor have a reason to respond to your actions?

· Capabilities

· Does the competitor have the means to respond to your actions?

Awareness

3

3

Action types and characteristics

12

12

· Timing

· First, second, late

· Frequency

· Speed

· Type

· Strategic

· R&D

· Market entry (product/geo)

· Alliances

· Acquisitions

· Tactical

· Pricing

· Advertising

· Product

· Quality

Model of competitive dynamics

•

Market

commonality

•

Resource

similarity

Competitors

•

Awareness

•

Motivation

•

Capability

Drivers of

behaviour

•

Likelihood and

type of attack

•

Likelihood and

type of

response

Rivalry

•

Market

position

•

Performance

Outcomes

Competitive blind spots

Competitive

Blind Spots

Misjudging

industry

boundaries

Poor

identification of

the competition

Overemphasis

on competitors’

visible

competence

Overemphasis

on where, not

how

Faulty

assumptions

about the

competition

Paralysis by

analysis

Next week

· The internal organisation

· Required reading: Chapter 3

· Required reading: Competing on Resources

· Don’t forget you preparation (poste one comment).