Notes on Competitive Rivalry and Dynamics

Examples: Firms competing in various product or geographic markets simultaneously. Examples include Coca-Cola and Pepsi in beverages, Apple and Samsung in smartphones, and McDonald's and Burger King in fast food.

Focus: Changing the institutional environment to gain competitive advantages. This includes engaging with regulations, affecting public policy, and leveraging informal norms.
Institutional environment : is Government influences such as regulations that establish the rules of the game

Market Commonality: Refers to the degree of overlap in the markets firms compete in, impacting competition intensity.
Resource Similarity: Involves comparing the types of tangible and intangible resources that firms have, which influences their strengths, weaknesses, and strategies.

First Mover: A firm that takes the initiative in a competitive action, gaining first-mover advantages such as early brand loyalty and market share.
Second Mover: Follows the first mover, learning from their mistakes while improving efficiency and minimizing risk.
Late Mover: Enters the market significantly later, typically facing challenges in achieving customer loyalty and market share.
Market Size Impacts: Larger markets might offer more opportunities for first movers to secure a significant advantage.

A firm’s reputation can either deter or attract competition depending on its past actions. Market leaders may provoke more responses due to their perceived strength, while firms with questionable reputations may not be seen as threats, attracting less competition.

Fast-Cycle Markets: Characterized by quick technology changes and rapid imitation of capabilities. Firms like tech startups and software companies are common.
Slow-Cycle Markets: Firms here can sustain competitive advantages over longer periods without significant risk of displacement. Examples include industries like utilities or pharmaceuticals (in terms of product development timelines).
Standard-Cycle Markets: Moderate imitation costs require continuous updates and innovation. Manufacturing and consumer goods companies (like car manufacturers) are often found in these markets.