Strategic Management Dynamics - support materials - Chapter 7

Strategic Management Dynamics - Chapter 7 - rivalry.

Just three rivalry mechanisms cover all competitive interactions between firms.
In the case of customers these are

winning new customers

stealing customers from rivals

obtaining a larger share of business from shared customers

Organizations may also compete for other resources, such as employees or providers of funds, making the mechanisms equally relevant to public services and voluntary groups. The chapter provides frameworks for laying out and quantifying how customers or other resources are flowing between competitors, and the implications of these processes for how performance develops over time. It also shows how to assess the consequence for the way in which industries develop, including important considerations, such as the risk of building a market for competitors to exploit. Most importantly, the chapter shows how to assess the impact of decisions and policies on the winning and losing of competitive situations. Many situations involve several competing organizations, or many, so the chapter also offers ways to understand and simplify these complex interactions. It ends with a description of the rivalry mechanisms as they apply to competitors in the low-fare airline sector, for which a learning-simulation is available.

The chapter includes connections to the following concepts: elasticity of demand, first-mover advantage, switching costs, competitor analysis, blue ocean strategy, game theory, strategic groups.

Materials to support Chapter 7 of Strategic Management Dynamics include -

For registered site users:

Worksheets 10, 11 & 12 from Strategic Management Dynamics in PDF format - Login above or register here

For registered online students:

Class lecture segments.

For information on our 10-week online course in Strategy Dynamics see the course information page

For registered Teachers:

PDF slides from the book
End of chapter questions and solutions.

If you hold a faculty position at a university and wish to apply for teacher registration see registration links here

Other resources and links

Software

Download the mystrategy reader for use in the worksheets and exercises here

Books

Constantinos Markides and Paul Geroski (2004) Fast Second: How Smart Companies Bypass Radical Innovation to Enter and Dominate New Markets, Jossey Bass.

Besanko, D., Dranove, D., Shanley, M. and Schaefer, S. (2007) The Economics of Strategy, 4th edn, Wiley, Chichester.

Chan Kim, W. and Mauborgne, R. (2004) Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, Harvard Business School Press, Boston.

Dutta, P. (1999) Strategies and Games: Theory and Practice, MIT Press, Boston, MA.

(eds) Faulkner, D. and Campbell, A., The Oxford Handbook of Strategy, Blackwell, Oxford,