l5. understanding the dynamics of competitive rivalry and strategic reponse

Question 1

ongoing actions and reactions between competing firms as they strive to gain an advantage

Answer 1

competitive rivalry

Question 2

forms of rivalry

Answer 2

1. price wars
2. advertising battles
3. product innovations
4. service improvements

Question 3

key characteristics of competitive rivalry

Answer 3

1. interdependence
2. repetition
3. escalation

Question 4

Each firm’s success is influenced by competitors’ moves

Answer 4

interdependence

Question 5

Competitive actions often lead to countermoves, creating cycles.

Answer 5

repetition

Question 6

Rivalry can intensify over time, especially in mature markets

Answer 6

escalation

Question 7

Refers to the pattern and sequence of actions and reactions among firms engaged in competition.

Answer 7

competitive dynamics

Question 8

3 key aspects of competitive dynamics

Answer 8

1. action
2. response
3. performance outcomes

Question 9

move by a firm to improve its competitive position

Answer 9

action

Question 10

counter-move by a rival to defend or regain position

Answer 10

response

Question 11

result of these competitive interactions in terms of market share, profitability etc

Answer 11

performance outcomes

Question 12

globalization’s impact

Answer 12

1. increases the number of competitors
2. brings new competitive threats from foreign firms
3. encourages innovation and efficiency

Question 13

global competitive strategies

Answer 13

1. standardization vs. adaptation
2. strategic alliances and mergers
3. entry into emerging markets

Question 14

porter’s five forces

Answer 14

1. Rivalry Among Existing Competitors
2. Threat of New Entrants
3. Bargaining Power of Suppliers
4. Bargaining Power of Buyers
5. Threat of Substitute Product

Question 15

Long-term, resource-intensive actions that reshape a firm’s competitive
position

Answer 15

strategic response

Question 16

examples of strategic response

Answer 16

1. product development
2. mergers and acquisitions
3. global expansion

Question 17

factors influencing strategic response

Answer 17

1. resource availability
2. market position
3. competitive advantage

Question 18

Short-term, low-resource actions aimed at quick wins

Answer 18

tactical response

Question 19

examples of tactical response

Answer 19

1. discount promotions
2. public relations campaigns
3. temporary service upgrades

Question 20

Firms heavily reliant on one market are more likely to attack competitors
to maintain dominance.

Answer 20

market dependence

Question 21

factors that influence the likelihood of a rival’s attack

Answer 21

market dependence
resource similarity
first-mover advantage
organizational motivation and capability

Question 22

Firms with similar resources are more likely to target each other

Answer 22

resource similarity

Question 23

Rivals may attack to neutralize or overtake a market pioneer

Answer 23

first-mover advantage

Question 24

Willingness and ability to initiate an attack

Answer 24

organizational motivation and capability

Question 25

key factors in a rival's decision to respond

Answer 25

awareness motivation capability

Question 26

Does the firm know it’s being challenged?

Answer 26

awareness

Question 27

Is the firm willing to respond?

Answer 27

motivation

Question 28

Does it have the resources and flexibility to respond?

Answer 28

capability