Competitors – Competitive Behavior and RivalryEssay Preview: Competitors – Competitive Behavior and RivalryReport this essayCompetitors are firms operating in the same market, offering similar products, and targeting similar customers (Hitt, 2011). Wal-Mart and Target are competitors, as are McDonalds, Burger King and Wendys. These names are quiet familiar to us as we are continuously exposed to their marketing, advertisements and product lines. As organizations are essential for the survival of an industry, industries can only grow when fair competition is present and performing efficiently.
Competitive rivalry is defined by Hitt, Ireland, and Hoskisson as “the ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position.” (2011) These types of actions and responses allow industries to grow and the economy to perform effectively. The rivalry between Wendys and Mc Donalds has allowed the fast food industry to grow in size, presentation, products and demand.
Competitive behavior is defined as “the set of competitive actions and responses the firm takes to build or defend its competitive advantages and to prove its market position.” (Ireland, Hitt, Hoskisson, 2011) These behaviors can be seen in marketing campaigns and advertisements on television and other marketing mediums. An example of competitive behavior is the automotive industry. Every year many members of this industry introduce newer models of automobile to the general consumer that are focused on popular demands of their lifestyle. Automobile marketers are continuously inventing new and creative programs to induce customers to purchase and reconsider their brand. Fords Swap Your Ride marketing, for example, aims at changing consumer perceptions about Ford by giving consumers the chance to exchange their competitive-make vehicle and experience a new Ford for a week (Ford Media, 2011). This marketing campaign represents part of the competitive dynamic of Ford.
Competition is defined as any number of actions, such as: (1) taking a given vehicle; (2) exchanging a given vehicle for a similar one after a one-to-one swap; and (3) returning any given vehicle to the dealer.1 This is more about the behavior that a manufacturer has experienced over the past year or so as compared to what would be predicted with its competitor. Competitiveness and the competitive nature of many of the behavior associated with the product we use may reflect the more complex manufacturing processes and procedures of our business. It also makes easy for individual members to identify competitors with a particular ability, even if the behavior is not present in the overall product and does not have the impact that, because of that ability, would result in a competitor not getting the car they want.
There are many different kinds of actions that can be expected in a competitive market, but most of them are defined in terms of the set of actions that the firm takes, the interactions we have with the manufacturer, and the other variables that the firm has taken in the effort to get the car they want.
Competitive behavior in the commercial market depends on all of the three things that we consider best in a potential market: ( 1) the level of awareness given by the consumer about the potential for competition; ( 2) the level of activity of the company involved; ( 3) the competitive process of its dealers. As discussed above, our analysis shows that, compared to other automotive and marketing industries, there are substantial differences between the types of situations we describe as competitive.
Competition in general is not restricted to small-group or business-wide behavior. It can be found in many industries such as manufacturing, finance, transportation, consumer research, and health (Ford Media, 2011). For example, the size of the firm and its workforce can affect a business’ performance characteristics. Consider, for example, the business of a small company whose top executives have a certain amount of responsibility and the size of its office environment allows for a significant amount of work on different projects. Or consider the size of a larger company who is more focused on a particular product than it is on a particular process. Competitive behavior in the automotive industry is a result of multiple factors; as discussed previously, all of which relate to their business needs. This information can influence our decision-making on whether or not to buy or sell a car. Our analysis also shows that some businesses face a significant disadvantage when it comes to the selection strategies and processes that make it feasible for the manufacturer to find a vehicle that would work for them. The advantages and disadvantages of an individual business are illustrated in Figure 1.2. Figure 1.2. Achieving Competitive Performance in Manufacturing and Supply Chain
This analysis shows that, when discussing all the competitive behaviors that the companies currently employ, many of them are defined in terms of the activity they will take to achieve specific market position. Some of these behaviors are those that can be attributed to business or technological evolution, such as marketing, product development, marketing services, or communications. These individuals must develop long-term plans, strategies, and tactics to compete and achieve specific competitive advantages and disadvantages, and other characteristics—whether or not those characteristics include a desire to use the brand, a desire to improve the experience of the customer, or a desire to keep developing or refining a product that will meet an exacting need.
In summary, the average customer wants to use the Ford brand. The market for cars has changed over the past 25 years. While that makes it different from other cars, the current generation of cars includes more diverse models, and with better environmental standards. By creating the right mix of vehicles for the different segments of the segment, Ford can become one of the largest car brands in the United States. The fact of the matter is that the average person does not need to buy a car, in this context alone, to own an
Competition is defined as any number of actions, such as: (1) taking a given vehicle; (2) exchanging a given vehicle for a similar one after a one-to-one swap; and (3) returning any given vehicle to the dealer.1 This is more about the behavior that a manufacturer has experienced over the past year or so as compared to what would be predicted with its competitor. Competitiveness and the competitive nature of many of the behavior associated with the product we use may reflect the more complex manufacturing processes and procedures of our business. It also makes easy for individual members to identify competitors with a particular ability, even if the behavior is not present in the overall product and does not have the impact that, because of that ability, would result in a competitor not getting the car they want.
There are many different kinds of actions that can be expected in a competitive market, but most of them are defined in terms of the set of actions that the firm takes, the interactions we have with the manufacturer, and the other variables that the firm has taken in the effort to get the car they want.
Competitive behavior in the commercial market depends on all of the three things that we consider best in a potential market: ( 1) the level of awareness given by the consumer about the potential for competition; ( 2) the level of activity of the company involved; ( 3) the competitive process of its dealers. As discussed above, our analysis shows that, compared to other automotive and marketing industries, there are substantial differences between the types of situations we describe as competitive.
Competition in general is not restricted to small-group or business-wide behavior. It can be found in many industries such as manufacturing, finance, transportation, consumer research, and health (Ford Media, 2011). For example, the size of the firm and its workforce can affect a business’ performance characteristics. Consider, for example, the business of a small company whose top executives have a certain amount of responsibility and the size of its office environment allows for a significant amount of work on different projects. Or consider the size of a larger company who is more focused on a particular product than it is on a particular process. Competitive behavior in the automotive industry is a result of multiple factors; as discussed previously, all of which relate to their business needs. This information can influence our decision-making on whether or not to buy or sell a car. Our analysis also shows that some businesses face a significant disadvantage when it comes to the selection strategies and processes that make it feasible for the manufacturer to find a vehicle that would work for them. The advantages and disadvantages of an individual business are illustrated in Figure 1.2. Figure 1.2. Achieving Competitive Performance in Manufacturing and Supply Chain
This analysis shows that, when discussing all the competitive behaviors that the companies currently employ, many of them are defined in terms of the activity they will take to achieve specific market position. Some of these behaviors are those that can be attributed to business or technological evolution, such as marketing, product development, marketing services, or communications. These individuals must develop long-term plans, strategies, and tactics to compete and achieve specific competitive advantages and disadvantages, and other characteristics—whether or not those characteristics include a desire to use the brand, a desire to improve the experience of the customer, or a desire to keep developing or refining a product that will meet an exacting need.
In summary, the average customer wants to use the Ford brand. The market for cars has changed over the past 25 years. While that makes it different from other cars, the current generation of cars includes more diverse models, and with better environmental standards. By creating the right mix of vehicles for the different segments of the segment, Ford can become one of the largest car brands in the United States. The fact of the matter is that the average person does not need to buy a car, in this context alone, to own an
Competitive dynamics is defined by Hitt, Ireland, and Hoskisson as “the total set of actions and responses taken by all firms competing within a market.” (2011) These dynamics allow the consumer to enjoy innovative features in the products we purchase as well as gain a better value to the products that are available to purchase. Through the presence of competition consumers are able to shop for the right product that fits their need at the right price.
The level of competition in a market is tied to the number of different markets that the firm and the competitors are jointly involved with. Referred to as market commonality it pertains to the degree of importance of the individual markets to each. There are many firms competing against one another in many market areas which engage them in multimarket competition. Firms with more multimarket contacts are less likely to initiate an attack, but more likely to respond aggressively when they are attacked. The degree of multimarket contact between two firms determines whether they are direct and immediate competitors.
Within a common market firms must assess what resources their competitors share to determine the best competitive strategy. Resource similarity refers to how comparable the firms tangible and intangible resources are to a competitors in terms of both types and amounts. Firms with similar types and amounts of resources are likely to have similar strengths, similar weaknesses, and use similar strategies. Assessing resource similarity can be difficult if critical resources are intangible rather than tangible.
Two firms will recognize their competitive relationship if they compete in the same markets and develop comparable market personalities. In a competitive situation, a firm has to be motivated to act or react, regardless of its capability (Chen, 2004). Motivation is a necessary condition and prereq for behavior, and is a more direct predictor of inter-firm rivalry than is capability (Chen, 2004).
These two concepts are the building blocks for a competitors analysis. This analysis is used to help firms understand their competitors. The firm will study the competitors future objectives and current strategies. By doing the competitor analysis, firms are able to predict the competitors behaviors when forming their competitive actions and response. If you line the two side by side, market commonality and resource similarity coincides with one another when putting a competitor analysis together. Traits from both area allow all necessary information to be analyzed and compiled into a complete analysis. In market commonality it allows the firm to put number on all the firms within the market and how each acts/works within that market and against each other. In resource similarity is shows how comparable the firms are in both areas and how they compare to one another in each of those markets they are involved in.
Market commonality and resource similarity both influence the awareness, motivation, and ability of the competitive actions and responses which drive competitive behavior. Awareness is the preceding factor for any competitive action or response. The extent of action and reaction to an activity is based upon the level of awareness by the firm. The level of awareness is typically higher for firms when they have similar resources in both type and amounts. Joint awareness, between two competing firms within the same market, allows those firms to understand each other in terms of their similar business activities.
Motivation provides the incentive for a firm to take action against a competitors activities. These actions relate to the perceived gains and/or losses that may occur from the actions of the competitor. The motivation behind the response or action from one firm to another may depend on the overall goals of the particular firm. For instance, a firm may be aware of the competitive activities of their competitor, but do not recognize enough incentive to provide the motivation for action. Market commonality is one of the biggest