Strategic and Tactical Actions
•Strategic Action (or Response)
Factors Affecting Likelihood of Attack
•First movers allocate funds for:
future competitive rivalry
First Mover
Factors Affecting Likelihood of Attack (cont’d)
•Second mover responds to the
first mover’s competitive action,
First Mover
Factors Affecting Likelihood of Attack (cont’d)
•Late mover responds to a
competitive action only after
First Mover
Factors Affecting Likelihood of Attack (cont’d)
•Small firms are more likely to:
–launch competitive actions
First Mover
Factors Affecting Likelihood of Attack (cont’d)
•Large firms are likely to initiate
more competitive actions as well
First Mover
Factors Affecting Likelihood of Attack (cont’d)
•Quality exists when the
quality
First Mover
Quality Dimensions of Goods and Services
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Factors Affecting Likelihood of Attack (cont’d)
•Service quality
dimensions include:
First-Mover
Second Mover
Late Mover
Likelihood of Response
• Responses to a competitor’s action are taken
when the action:
Factors Affecting Likelihood
of Response
•Firms study three other factors to predict how a
competitor is likely to respond to competitive
actions: