Competitive Rivalry and Competitive Dynamics

Vocabulary flashcards to help understand key concepts related to competitive rivalry and dynamics in strategic management.

Competitive Rivalry

The ongoing set of competitive actions and responses that occur among firms as they maneuver for an advantageous market position.

Competitive Dynamics

The total set of competitive actions and responses taken by all firms competing within a market.

Competitors

Firms operating in the same market, offering similar products, and targeting similar customers.

Market Commonality

The number of markets in which firms compete against each other and the degree of importance of the individual markets to each.

Resource Similarity

The extent to which the firm’s tangible and intangible resources compare favorably to a competitor’s in terms of type and amount.

Competitive Behavior

The set of competitive actions and responses a firm takes to build or defend its competitive advantages and to improve its market position.

First Mover

A firm that takes an initial competitive action to build or defend its competitive advantages or improve its market position.

Second Mover

A firm that responds to the first mover’s competitive action, typically through imitation.

Late Mover

A firm that responds to a competitive action a significant amount of time after the first mover's action and the second mover's response.

Awareness

The extent to which competitors recognize the degree of their mutual interdependence that results from market commonality and resource similarity.

Motivation

The firm’s incentive to take action or to respond to a competitor’s attack based on perceived gains and losses.

Ability

Each firm’s resources and the flexibility they provide to attack or respond to competitors.

Strategic Action

A market-based move that involves a significant commitment of organizational resources and is difficult to implement and reverse.

Tactical Action

A market-based move that firms take to fine-tune a strategy; these actions involve fewer resources and are relatively easy to implement and reverse.

Competitive Actions

Strategic or tactical actions that firms take to build or defend their competitive advantages.

Competitive Responses

Strategic or tactical actions firms take to counter the effects of a competitor’s competitive action.

Multimarket Competition

A condition when firms compete against each other in several product or geographic markets.

Competitive Blind Spots

Situations in which a firm is caught off guard by a competitor’s actions, potentially resulting in negative outcomes.

Omnichannel Strategy

A seamless approach to the customer experience through multiple channels, integrating physical and digital commerce.

Competitive Actions and Responses

The sequence of actions taken by firms in response to their competition, creating a continuous cycle of interaction.

E-commerce Integration

The ability of firms to incorporate online capabilities within their traditional business models to meet customer demands.