Factors Affecting Strategic Response
•Strategic actions receive
strategic responses
Type of
Competitive
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Factors Affecting Strategic Response (cont’d)
•An actor is the firm taking an
action or response.
Type of
Competitive
Factors Affecting Strategic Response (cont’d)
•Market dependence is the
extent to which a firm’s
position.
Type of
Competitive
Action
Competitive Dynamics versus Rivalry
•Competitive Dynamics
–Ongoing actions and responses taking place
position.
Competitive Dynamics versus Rivalry (cont’d)
•Competitive Rivalry (Individual firms)
–Market commonality and resource similarity
–Awareness, motivation and ability
Competitive Dynamics
•Competitive advantages are
shielded from imitation for
Slow-cycle
Markets
Gradual Erosion of a Sustained Advantage
Competitive Dynamics (cont’d)
• The firm’s competitive
advantages aren’t shielded
Slow-cycle
Markets
Competitive Dynamics (cont’d)
•Moderate cost of imitation
may shield competitive
advantages.
Slow-cycle
Markets
Fast-cycle