MGMT 490 chapter 6 Support the Business level strategy : Competitive and cooperative Moves

First Mover is..

an initial entrant into the market

Co-opetition is...

blend of competition and cooperation between two companies

3. Mutual forbearance is..

rival each realize they have more to lose through aggression against each other.

Mutual forbearance is..

situation rivals don't act aggressively because each recognize others can retaliate in multiple markets. b. could be costly

1. speed response ...

a. under attack stop taking market share b. Slow response lead to Cushing.

Motivation framework...

action have reactions

colocation is..

When goods and services offered under different brands are located close to one another

Capability

have multiple options and responses for action plans.

5. Fighting brands is..

lower end brand introduces to try protect company market share without damaging the companies existing brands.

Multipoint competitions...

multiple markets by the same competitor

Blue ocean strategy ....

new untapped market rather than competing rivals in existing market.

AMC framework : Competitive tension

Awareness Motivation Capability

Bricolage is..

using resources available to input and create process. ex. printing press

Hyper competition is..

very rapid and unpredictable moves and countermoves that can undermine competitive advantages.

Responding to rivals moves ...

1. Speed response 2. Multiple point competition 3. Mutual forbearance 4. Responding to a disruptive innovation 5. Fighting brands

Lesson about competitive moves are...

1. first mover advantage 2. Disruptive innovation 3. Blue ocean strategy 4. Footholds 5. Bricolage

Strategic Alliances ...

cooperative arrangement between two or more orgs. don't involve the creation of new entity.

Foot holds are..

...small position company intentionally established within a market in which doesn't yet compete. a. Testing market b. Acquisition of growing competitions

joint ventures

...two or more orgs. contributing to the creation of a new entity. a. shared opportunity b.

6.3 shaking the Market with Disruptive innovations

..occurs when companies introduce offering that so unique and superior threaten to replace tractional approaches a. tablet = versatility and portabile b. streaming audio= music cassettes c. camera phones = photography industry d. ships = replace slower sailing

Being a First mover : Advantage

1. Gain Dominance

6.3 Making Cooperative Moves LO's ...

1. Know the four types of cooperative moves. 2. Understand the benefits of taking quick and decisive action.

6.2 Responding to Competitors moves

1. Know the three factors that determine the likelihood of a competitor response. 2. Understand the importance of speed in competitive response. 3. Describe how mutual forbearance can be beneficial for companies engaged in multipoint competition. 4. Explain two ways companies can respond to disruptive innovations. 5. Understand the importance of fighting brands as a competitive response.

6.1 Making Competitive Moves LO's

1. Understand the advantages and disadvantages of being a first mover. 2. Know how disruptive innovations can change industries. 3. Describe two ways that using footholds can benefit companies. 4. Explain how companies can win without fighting using a blue ocean strategy. 5. Describe the creative process of bricolage.

LO's

1. What different competitive moves are commonly used by companies? 2. When and how do companies respond to the competitive actions taken by their rivals? 3. What moves can companies make to cooperate with other companies and create mutual benefits?

Blue Ocean strategy

a. avoid opponents strengths b. creates new markets instead of fighting for existing customers

Bricolage are...

a. clever combatant look to effect combined energy b. tinker with existing materials to create something new.

2. Mutual competition is..

a. company faces same rival in more than one market b. beware of retaliation in geographic regions

4. Responding to disruptive innovation ...

a. ignore disruption, engage in counterattack using different goods and services or directly match competitor moves.

Disruptive innovation is..

an improvement conflict with, and threaten to replace, traditional approaches to competing with an industry.

first mover advantage is...

argued occupy field first title innovation

Disruptive innovation

disrupting enemy alliances is effective. alternative to war. b. when offering emerges that are superior they threaten to replace traditional approaches.

Footholds are...

establishing small position and then expand from its classic war tactic used.

Awareness

executives alert for competitors can steal their firm market shares