Analyze competitive dynamics from "summary" of Competitive Strategy by Michael E. Porter
Competitive dynamics involve the examination of the strategies and tactics used by companies to gain the upper hand in their respective markets. It also involves understanding the competitive landscape and how companies can thrive in a fiercely competitive environment.- In order to outcompete your rivals, it is important to gain an understanding of their activities and competitive forces in the market. Analyzing competitors' strategies can assist companies in making better decisions for the future.
- Market share and customer base are key metrics for analysing competitive dynamics. Highlighting other achievements such as award wins, cost reduction, customer service etc., can provide a way to get ahead of the competition.
- Companies must keep track of how competitors are affected by economic cycles, government regulations, technological disruptions, borrowing costs etc. This will enable them to preempt changes in the external environment and act accordingly.
- To outplay the competition, companies need to establish rock solid defensive strategies that protect them from any harm caused by opposition.
- In this process, distinguishing potential partner’s weaknesses from strengths can play an essential role. Both may influence the company's decision to offer incentives, pricing strategies, alliance formation, etc.
- To stay ahead, traditional thresholds such as price and quality need to be monitored against rivals to compare the performance.
- Linking up with third parties to get access to their resources can provide sufficient capital and capability to compete successfully.
