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    Competitive Rivalry Model: Summary Written By: Zubair Ahmed Memon

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    Zubair
    The document summarizes a competitive rivalry model. It discusses how a company's awareness of its competitors, their motivations, and capabilities helps predict competitive responses. Market commonality and resource similarity influence competitive actions, with more direct rivals in jointly served markets with similar resources. Understanding these factors allows firms to anticipate attacks and responses. The document also outlines how market characteristics like cycle speed affect competitive dynamics, with advantages more sustainable in slow cycles and temporary in fast cycles.

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    Competitive Rivalry Model: Summary Written By: Zubair Ahmed Memon

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    Zubair
    34 views2 pages
    The document summarizes a competitive rivalry model. It discusses how a company's awareness of its competitors, their motivations, and capabilities helps predict competitive responses. Market commonality and resource similarity influence competitive actions, with more direct rivals in jointly served markets with similar resources. Understanding these factors allows firms to anticipate attacks and responses. The document also outlines how market characteristics like cycle speed affect competitive dynamics, with advantages more sustainable in slow cycles and temporary in fast cycles.

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    The document summarizes a competitive rivalry model. It discusses how a company's awareness of its competitors, their motivations, and capabilities helps predict competitive responses. Market commonality and resource similarity influence competitive actions, with more direct rivals in jointly served markets with similar resources. Understanding these factors allows firms to anticipate attacks and responses. The document also outlines how market characteristics like cycle speed affect competitive dynamics, with advantages more sustainable in slow cycles and temporary in fast cycles.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    34 views2 pages

    Competitive Rivalry Model: Summary Written By: Zubair Ahmed Memon

    Uploaded by

    Zubair
    The document summarizes a competitive rivalry model. It discusses how a company's awareness of its competitors, their motivations, and capabilities helps predict competitive responses. Market commonality and resource similarity influence competitive actions, with more direct rivals in jointly served markets with similar resources. Understanding these factors allows firms to anticipate attacks and responses. The document also outlines how market characteristics like cycle speed affect competitive dynamics, with advantages more sustainable in slow cycles and temporary in fast cycles.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    COMPETITIVE RIVALRY MODEL

    Summary written by: Zubair Ahmed Memon

    Link: https://www.ukessays.com/essays/marketing/drivers-of-competitive-
    actions-and-responses-marketing-essay.php

    Submitted to:
    Sir Adnan Kehar

    SEPTEMBER 14, 2018


    Competitive Rivalry Model:
    The ongoing competitive action/response sequence between a firm and a competitor have impact
    on the performance of both firms, therefore it is important for companies to carefully analyze and
    understand the competitive rivalry present in the markets they serve to select and implement
    successful strategies.

    In this model it is discussed that for a particular company be able to respond competitive rivalry,
    it has to know that who its competitors are. It should have motivation to respond and it should
    have the necessary resources and capabilities to take necessary action. Companies which have
    greater market commonality and resource similarity direct competitors.

    Two important factors of competitive actions and responses are market commonality and resource
    similarity. Market commonality is concerned with the number of markets with which the firm and
    a competitor are jointly involved and the degree of importance of the individual markets to each.
    Resource similarity is the extent to which the firm’s tangible and intangible resources are
    comparable to a competitor’s in terms of both type and amount.

    Companies who have almost common resources tend to have same strengths and weaknesses, they
    use same strategies. Competitors are more likely to respond to strategic and tactical actions of
    market leaders in the industry. Therefore, reputation is also important factors that determine the
    extent of competitive rivalry. Understanding a competitor’s awareness, motivation, and ability
    helps the firm to predict the likelihood of an attack by that competitor and the probability that a
    competitor will respond to actions taken against it.

    Competitive dynamics concerns the ongoing competitive behavior occurring among all firms
    competing in a market for advantageous positions. Market characteristics affect the set of actions
    and responses that firms take while competing in a given market as well as the sustainability of
    firms’ competitive advantages.

    In slow-cycle markets, where competitive advantages can be maintained, competitive dynamics


    finds firms taking actions and responses that are intended to protect, maintain, and extend their
    proprietary advantages.

    In fast-cycle markets, competition is almost frenzied as firms concentrate on developing a series


    of temporary competitive advantages. This emphasis is necessary because firms’ advantages in
    fast-cycle markets aren’t proprietary and as such, are subject to rapid and relatively inexpensive
    imitation.

    Standard-cycle markets are between slow-cycle and fast-cycle markets, in that firms are
    moderately shielded from competition in these markets as they use competitive advantages that
    are moderately sustainable. Competitors in standard-cycle markets serve mass markets and try to
    develop economies of scale to enhance their profitability.

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