Chp 12 Flashcards
(15 cards)
What is the first step in evaluating an industry environment?
a) Analyze industry as benign or hostile
What are characteristics of a benign industry environment?
a) Market demand exceeds supply, high margins, low intensity
What are characteristics of a hostile industry environment?
a) Slow growth, price wars, high competitive intensity
What are the four competitor behavioral patterns?
a) Prospector, Defender, Analyzer, Reactor
What is a Prospector?
a) Industry change leader, focuses on own and customer perspectives
What is a Defender?
a) Focused on limited key criteria and defends position
What is an Analyzer?
a) Combination of Prospector and Defender behaviors
What is a Reactor?
a) Slow to react, unstable
What is benchmarking?
a) Comparing processes to competitors or best in class
What is a clipping service used for?
b) Synthesizing public information on competitors
What is a tactical response to competitors?
a) Immediate response to short-term challenges
What is a strategic response to competitors?
a) Responding to emerging long-term challenges
When is cooperation an effective competitive approach?
a) When passive agreement avoids destructive behavior or active cooperation creates shared benefits
What are forms of active cooperation?
a) Non-equity contracts, equity investments, joint ventures
What is credible commitment in competitive behavior?
a) Consistent demonstration of willingness to respond strongly
