What is competitive dynamic model?

The Dynamic Model of Competition The dynamic model of the strategy process is a way of understanding how strategic actions occur. It recognizes that strategic planning is dynamic; that is, strategy-making involves a complex pattern of actions and reactions. It is partially planned and partially unplanned.

What is meant by competitive cost dynamics?

Is the set of actions and reactions in a competitive business environment that rival firms display. The action of an individual firm becomes the key indicator of competitive dynamics as each rival firm enacts this action in order to enhance its competitive advantage vis–à–vis its competitors.

What is competitive rivalry and competitive dynamics?

■ Competitive rivalry concerns the ongoing actions and responses between a firm and its DIRECT COMPETITORS for an advantageous market position. ■ Competitive dynamics concern the ongoing actions and responses AMONG ALL FIRMS competing within a market for advantageous positions.

What does competitive behavior mean?

The term ‘Competitive’ means willing and eager to compete. Competitive Behavior includes the actions and steps taken by a firm to build or reduce the competition and to increase the market ration.

What is competitive dynamics in slow cycle markets?

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. Innovation is vital to competitive success in each of the three types of markets.

How resources and capabilities affect competitive dynamics?

According to the resource-based view, in order to develop a competitive advantage the firm must have resources and capabilities that are superior to those of its competitors. Without this superiority, the competitors simply could replicate what the firm was doing and any advantage quickly would disappear.

What is competitive cost dynamics in strategic management?

Competitive Dynamics  Total set of actions and responses of all firms competing within a market. Competitive Dynamics  Ongoing actions and responses taking place between all firms competing within a market for advantageous positions.

What is competitive dynamics in slow-cycle markets?

What are the two types of competitive action?

Such actions can be classified as one of six different types of competitive action: (i) pricing, (ii) marketing, (iii) new products, (iv) capacity, (v) service, and (vi) signaling. Through an examination of each of these types of actions, a clearer picture of competition emerges.

What are the 3 drivers of competitive behavior?

Chen (1996) identifies three factors as the drivers of competitive behavior: awareness, motivation, and capability. Awareness suggests the level of cognizance a firm has of its competitors and the general competitive environment. Motivation reflects a focal firm’s level of drive to take competitive actions.

What is competitive dynamics in standard cycle markets?

In standard-cycle markets? (pp. 143-147) Competitive dynamics concerns the ongoing competitive behavior occurring among all firms competing in a market for advantageous positions. Firms should recognize that the set of competitive actions and responses taken by all firms differs by type of market.