Chapter5 CompetitiveDynamics Decliningemphasisonsingle domesticmarketsandincreasingemphasisonglobalmarkets Advancesincommunicationtechnologymakecoordinationeasieracrossmultiplemarkets Advancesintechnologyandinnovationhaveincreasedcompetitivenessofsmallandmediumsizedfirms Nationalbarriersarefallingduetothenumberandscopeoftradeagreements GATT WTO NAFTA EEC EU FactorsLeadingtoMoreComplexRivalry CompetitiveDynamics Resultsfromaseriesofcompetitiveactionsandcompetitiveresponsesamongfirmscompetingwithinaparticularindustry CompetitiveRivalry Existswhentwoormorefirmsjockeywithoneanotherinthepursuitofbettermarketposition RelativeSize Speed Innovation Quality AbilityforActionandResponse Outcomes DriversofCompetitiveBehavior Awareness Motivation Capability CompetitorAnalysis InterfirmRivalry Attack Response LikelihoodofAttack FirstMoverIncentives LikelihoodofResponse TypeofCompetitive Action Dependenceonthe Market ResourceAvailability Actor sReputation Competitive Slow Standard orFastCycle MarketTypes Competitive Sustained Outcomes Competitive Advantage Temporary Advantage Evolutionary Outcomes Entrepreneurial orMarket Power Growth Oriented Actions Feedback ModelofInterfirmRivalry LikelihoodofAttackandResponse DriversofCompetitiveBehavior Motivation Capability Awareness ModelofInterfirmRivalry LikelihoodofAttackandResponse Doesthefirmhaveappropriateincentivestoattackorrespond DriversofCompetitiveBehavior Motivation Capability Awareness ModelofInterfirmRivalry LikelihoodofAttackandResponse Doesthefirmhavethenecessaryresourcestoattackorrespond DriversofCompetitiveBehavior Motivation Capability Awareness ModelofInterfirmRivalry LikelihoodofAttackandResponse RelativeSize Speed Innovation Quality AbilityforActionandResponse Outcomes DriversofCompetitiveBehavior Awareness Motivation Capability CompetitorAnalysis InterfirmRivalry Attack Response LikelihoodofAttack FirstMoverIncentives LikelihoodofResponse TypeofCompetitive Action Dependenceonthe Market ResourceAvailability Actor sReputation Competitive Slow Standard orFastCycle MarketTypes Competitive Sustained Outcomes Competitive Advantage Temporary Advantage Evolutionary Outcomes Entrepreneurial orMarket Power Growth Oriented Actions Feedback ModelofInterfirmRivalry LikelihoodofAttackandResponse CompetitorAnalysis ResourceSimilarity MarketCommonality ModelofInterfirmRivalry LikelihoodofAttackandResponse CompetitorAnalysis ResourceSimilarity MarketCommonality Multipointcompetitiontendstoreducecompetitiveinteractions butincreasesthelikelihoodofresponsewhereinteractionoccursForexample airlinespriceflightssimilarlybutrespondquicklywhencompetitorsintroducepromotionalprices ModelofInterfirmRivalry LikelihoodofAttackandResponse CompetitorAnalysis ResourceSimilarity Docompetitorspossesssimilartypesoramountsofresources MarketCommonality ModelofInterfirmRivalry LikelihoodofAttackandResponse CompetitorAnalysis ResourceSimilarity MarketCommonality Firmsarelessinclinedtoattackafirmthatislikelytoretaliate Firmswithdissimilarresourcesaremorelikelytoattack Firmswithsimilarresourcesaremorelikelytobeawareofeachother scompetitivemoves ModelofInterfirmRivalry LikelihoodofAttackandResponse RelativeSize Speed Innovation Quality AbilityforActionandResponse Outcomes DriversofCompetitiveBehavior Awareness Motivation Capability CompetitorAnalysis InterfirmRivalry Attack Response LikelihoodofAttack FirstMoverIncentives LikelihoodofResponse TypeofCompetitive Action Dependenceonthe Market ResourceAvailability Actor sReputation Competitive Slow Standard orFastCycle MarketTypes Competitive Sustained Outcomes Competitive Advantage Temporary Advantage Evolutionary Outcomes Entrepreneurial orMarket Power Growth Oriented Actions Feedback ModelofInterfirmRivalry LikelihoodofAttackandResponse InterfirmRivalry Attack Response LikelihoodofAttack FirstMoverIncentives LikelihoodofResponse TypeofCompetitive Action Dependenceonthe Market ResourceAvailability Actor sReputation ModelofInterfirmRivalry LikelihoodofAttackandResponse FirstMover SecondMover InterfirmRivalry Attack Response LikelihoodofAttack FirstMoverIncentives LikelihoodofResponse TypeofCompetitive Action Dependenceonthe Market ResourceAvailability Actor sReputation Whetheracompetitorislikelytoresponddependsonseveralkeyfactors ModelofInterfirmRivalry LikelihoodofAttackandResponse TypesofCompetitiveActions GaugingtheLikelihoodofResponse Actor sReputation TypeofCompetitiveAction TacticalorStrategic MarketDependence CompetitorResources GaugingtheLikelihoodofResponse RelativeSize Speed Innovation Quality AbilityforActionandResponse Outcomes DriversofCompetitiveBehavior Awareness Motivation Capability CompetitorAnalysis InterfirmRivalry Attack Response LikelihoodofAttack FirstMoverIncentives LikelihoodofResponse TypeofCompetitive Action Dependenceonthe Market ResourceAvailability Actor sReputation Competitive Slow Standard orFastCycle MarketTypes Competitive Sustained Outcomes Competitive Advantage Temporary Advantage Evolutionary Outcomes Entrepreneurial