18 Questions
What is the relationship between market commonality and resource similarity?
They have a direct relationship
How does market commonality and resource similarity influence a firm's perception of its competitors?
They increase a firm's understanding of competitor actions
What is the significance of first-mover benefits in competitive actions?
First movers gain loyal customers initially
How do market commonality and resource similarity impact a firm's ability to predict competitor actions?
They improve the quality of the firm's predictions
What role do awareness, motivation, and ability play in a firm's competitive behavior according to the text?
They shape a firm's incentive to attack or respond
Why might not all firms be able to benefit from being first movers?
Due to various factors like awareness, motivation, or ability
What is the primary purpose of studying competitive rivalry?
To predict competitive actions and responses of competitors
What distinguishes strategic actions from tactical actions?
Resource commitment and ease of implementation
How are competitive responses different from competitive actions?
Responses are focused on market positioning, while actions aim to build advantages
Which of the following best describes a tactical response?
Demands fewer organizational resources and is reversible
What is the typical first step a firm takes to anticipate its competitors' actions?
Competitor analysis
In the context of an airline company, what would changing prices in a particular market be considered?
Tactical response
What does market commonality refer to?
The number of markets in which firms compete against each other
Which factor is crucial for a firm to recognize before taking any competitive action?
Market commonality
What does resource similarity encompass?
The comparability in type and amount of resources between firms
How does motivation influence competitive actions?
By affecting perceived gains and losses
Why is resource dissimilarity significant in competitive actions?
It influences the length of delay in response by the disadvantaged firm
What is the relationship between firms' resources and competitive actions?
Resource dissimilarity influences the timing of competitive actions
Learn about the importance of competitor analysis when entering a foreign market and the concepts of market commonality and resource similarity. Explore how firms need to understand both local and foreign competitors to succeed in a new market.
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