strategic mangmnt final

8/3/2019 Strategic Mangmnt Final

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BUILDING AND SUSTAINING

COMPETITIVE ADVANTAGE


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CREATIVE MEMBERS

NAME ROLL NO.

RAJANI GUJARATI 21

KARTHIKA GOPINATH 23

RASHMI SAWANT 47

SHILPA SERVEGAR 48

POOJA SHAH 51


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AGENDA

Meaning of competitive advantage Concepts

From competitors to competitive dynamics

A model of competitive rivalry

Competitor analysis

Market commonality

Resource similarity

A framework of competitor analysis Drivers of competitive actions and responses

Inter-firm rivalry


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AGENDA

Likelihood of attack

Likelihood of response

Competitive dynamics

Slow-cycle markets

Fast-cycle markets

Standardcycle markets


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MEANING OF COMPETITIVE

ADVANTAGE

Competitive advantage gives a company an edge over

its competitors


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CONCEPTS

COMPETITIVE RIVALRY:

It is an ongoing set of competitive actions and responses

among firms

COMPETITIVE BEHAVIOUR:

It is a set of competitive actions and responses the firm

takes to build or defend its competitive advantage


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CompetitiveAnalysis

Drivers ofCompetitive

Behavior

-Awareness

-Motivation

-Ability

INTER-FIRMRIVALRY

Likelihood ofattack

-First-moverincentives

-Organizationalsize

-Quality

Likelihood ofResponse

-Type ofcompetitive action

-Reputation

-Marketdependence

Outcomes-MarketPosition

-FinancialPerformance

A MODEL OF COMPETITIVE RIVALRY


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COMPETITIVEANALYSIS

Drivers ofCompetitive Behavior

-Awareness

-Motivation

-Ability

INTER-FIRM

RIVALRYLikelihood of

attack


-Organizationalsize

-Quality


-Type ofcompetitive

action

-Reputation

-Market

dependence

Outcomes

-MarketPosition



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COMPETITOR ANALYSIS

First step for a firm to predict the extent and nature

of rivalry with each competitor

Factors determining competitiveness of competitors:

Market Commonality

Resource Similarity


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MARKET COMMONALITY

The number of markets with which the firm and a

competitor are jointly involved

Engage in multi market competition

Example:


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RESOURCE SIMILARITY

The extent to which the firms tangible and intangible

resources are comparable to a competitors

Example:


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The shaded area represents the market commonality between two firms

Portfolio resources A Portfolio Resources B

II I

III IV

High

HighLow

Low

Market

Commonality

Resource

Similarity


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Competitive Analysis

DRIVERS OFCOMPETITIVE

BEHAVIOR

-Awareness

-Motivation

-Ability

INTER-FIRM

RIVALRYLikelihood of

attack


-Organizationalsize

-Quality


-Type ofcompetitive

action

-Reputation

-Market

dependence

Outcomes

-MarketPosition



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DRIVERS OF COMPETITIVE

ACTIONS AND RESPONSES

Awareness

Motivation

Ability


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Competitive Analysis

Drivers ofCompetitive Behavior

-Awareness

-Motivation

-Ability

INTER-FIRMRIVALRY

Likelihood of attack

-First-mover incentives-Organizational size

-Quality

Likelihood of Response

-Type of competitive

action

-Reputation

-Market dependence

Outcomes

-MarketPosition



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INTERFIRM RIVALRY

LIKELIHOOD OF ATTACK

First-mover incentive

Organizational size

Quality

LIKELIHOOD OF RESPONSE

Type of competitive action

Actors Reputation

Market dependence


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FIRST-MOVER INCENTIVE:

First-mover:

An initial competitive action taken by a firm in order to

build or defend its competitive advantages

Second-mover :

A firm that responds to the first movers competitive

action

Late -Mover:

A firm that responds to a competitive action, a

significant amount of time after the first movers action

and second movers response.



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(Contd.)

ORGANIZATIONAL SIZE:

An organizations size affects the competitive actions taken

by the firm



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(Contd.)

QUALITY:

It exists when the firms goods or services meet or exceed

customers expectations


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TYPE OF COMPETITIVE ACTION:

Competitive responses to tactical actions differ fromresponses to tactical actions

It allows to predict a competitors response to a

competitive action that has been launched against it



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(Contd.)

ACTORS REPUTATION:

Actor:A firm taking an action or a response

Reputation:

Positive or negative attribute ascribed by one rival toanother based on past competitive behavior



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(Contd.)

MARKET DEPENDENCE:

It denotes the extent to which a firms revenues orprofits are derived from a particular market


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CompetitiveAnalysis

Drivers ofCompetitive

Behavior

-Awareness

-Motivation

-Ability

INTER-FIRMRIVALRY

Likelihood ofattack


-Organizationalsize

-Quality


-Type ofcompetitive action

-Reputation

-Marketdependence

Outcomes-MarketPosition



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COMPETITIVE DYNAMICS

It is concerned with the ongoing actions and

responses taking place among all firms competing

within a market for advantageous positions


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SLOW-CYCLE MARKETS

The markets in which the firms competitive

advantage are shielded from imitation commonly for

long periods of time and where imitations is costly


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FAST-CYCLE MARKETS

The market in which the firms capabilities that

contribute to competitive advantages arent shielded

from imitation and where imitation is often repaid

and inexpensive


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Launch

Exploitation

CounterattackReturns from

a SustainedCompetitive

Advantage

0 5 10

GRADUAL EROSION OF A SUSTAINED

COMPETITIVE ADVANTAGE

DEVELOPING TEMPORARY


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DEVELOPING TEMPORARY

ADVANTAGES TO CREATE SUSTAINED

ADVANTAGE

Launch

Exploitation

Firm has already

advanced to advantageNo.2

Counterattack

5 10 15 20

Time (years)

Returns

from a series

of replicable

actions


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STANDARDCYCLE

MARKETS

The market in which the firms competitive advantage

are moderately shielded from imitation and where

imitation is moderately costly


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THANK YOU!!!

strategic mangmnt final

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