Salas 2

Lupita SalasDoctor McAteerBusiness Strategy and Policy7 May 2015Weekly Summary 5Competitors are the companies competing within the same market, producing similar products, trying to reach the same consumers. Competitive rivalry is consistent actions and competitive responses transpiring between competitors as they compete for the same market share. The results of competitive rivalry allow a corporation to be able to maintain its competitive advantages as well as their degree of returns. Competitive behavior is define by an individual company set of competitive motives and responses that will aggregate to their competitive rivalry. Competitive dynamics is a specific position taken by the companies that are competitors within a market segment. Market commonality means the quantity of markets with which rivals are adjacent with involvement and their importance to each. Resource similarity is how competitors resources that correlates in terms of type and quantity. They are the elementary units of competitors analysis due they are crucial to this understanding. This becomes a step for companies to make to predict competitors actions and responses. This is immensely important to know the competitors such as it will relate to predictions of the competitors market-based actions. This directly links from understanding to prediction. In all, the greater the market and resource similarity the more the companies knows their primary competitors. Just like competitive behavior drives by market and resource similarity, in result, the influence drivers such as awareness, motivation, and ability of competitive action. Next, the drivers will adhere the companys competitive behavior, and through actions and responses will incorporated in competition. Awareness which is a necessary step to a competitive plan or response being encounter by the company or its rival, defers to which rivals understand the level of their equal interdependence that sums up to their market and resource commonality. Awareness is greater when companies have very similar resources to use while the competitions in many markets. Awareness can affects the companys comprehension of the consequences of its competitive actions and replies. Motivation, which concerns to the companys motivation to take action or reply to rivals attack of forecast gains and losses. A company may know their competitors but may not have a reason to enter in the competition if there is no improvement to follow doing or that its market position will not affect if it does not respond. At times, a company may know of the large quantity of markets it allocates with a rival and may be motivated to respond to an assault by the rival, but does not sustain the ability to do so. Ability relation to each companies resources and the plasticity they provide. With no available resources, the company is at risk to not being able to attack nor response to competitors. Conversely, similar resources mean more equal threats and responses. If a company has similar resource, attacks should be study due that the other rival will likely respond to that action. Market and resource commonality with awareness, motivation, and ability, three more factors affect the change of a rival, to take action within the competition. First mover incentives who take the first competitive action, most relatively make above-average returns until rivals can accomplish to respond to their action and increase loyal customers. Many firms do not have this choice due to lack of awareness, motivation, or ability of engagement in this type of environment. In addition, companies may want to be second mover who are the companies responding to the first. The reason for this is that second movers, if they act fast can had an advantage over first mover. By understanding first movers past behaviors, second movers can prevent their mistakes, and improve more efficiently with creating value. Late movers are those who take the longest to response and are less effective and competitive. Organizational size is the next factor that reduce quantity of different types of competitive action that bigger firms inaugurate while smaller competitors use many variety of actions. A company should inaugurate a high quantity of different actions when engage in competition. The last factor, quality is a defining character that will produce successful competition in the economy. Competitors action should factor a companys tactical or strategically choice, the competitors past for the nature of future behaviors and there influence on the market of which action was pick to study to predict rival action. Tactical responses should exceed strategic responses because competitors respond more to actions of companies with predictable reputations, more so, if there a market leader. Many companies can predict the companies in need for revenue and profits will be depended on stronger responses. Nevertheless, companies that are less stable are less to respond to a single action that affects only one of the markets they compete within this specific market. Competitive dynamic worries about the process of competitive behavior occurring with the total companies competing that have advantageous positions. Market characteristics affect actions and responses that companies make during competition in a given market as well as the stability of companies advantages. In slow-cycle markets, competitive advantages can be suffice, competitive dynamics finds companies taking actions and responses that are for protections, maintainability and extending their proprietary advantages. In fast-cycle markets, competition is unstable as companies focus on making a set of short-term competitive advantages. This emphasis is necessary because companies advantages in fast-cycle markets are not owners as such, are cycle markets, in companies that maintain and protect from competitors in these markets serve as mass markets and try to begin economies of scale to increase profitability. Innovation is crucial to competitive triumph in each of the three segments of market. Companies should recognize that the set of competitive actions and responses taken by all companies conflict by type of markets. In all completive territory characteristics include, globalizations, technological advances, and other factors that will enhance a dynamic and a charge with rivalry environment. Companies must react in with different actions and responses to survive.