Competitors are firms competing in the same market, offering products that are s

Question

Competitors are firms competing in the same market, offering products that are similar, while targeting specific customers in order to gain a competitive advantage. In this assignment you will demonstrate your understanding of how to create and maintain a competitive advantage, answer the following questions:

• What is market commonality?

What is resource similarity? What does it mean to say that these concepts are the building blocks for a competitor analysis?

• What factors affect the likelihood that a firm will take competitive action?

• What factors affect the likelihood a firm will initiate a competitive response to the action taken by a competitor?

Explanation / Answer

(1) Market commonality refers to the number of markets with which competitors are jointly involved and their importance to each.

(2) Resource similarity refers to how comparable competitors’ resources are in terms of type and amount. .   These are the building blocks of a competitor analysis (which is the first step the firm takes to be able to predict its competitors’ actions and responses) because they are foundational to this understanding.

(3) Understanding competitors’ awareness, motivation, and ability helps to predict the likelihood of competitive action and response. Other factors which affect the likelihood a firm will use strategic and tactical actions to attack its competitors like; First mover incentives, Organizational size and Quality

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.