STEN 4980 Lecture Notes - Lecture 4: Vertical Integration, Empty Spaces
Document Summary
Competitors are watching and can react to a focal company"s strategy moves (e. g. when delta cut its price by 50% with its simplifares program in 2005, americans and united responded to it by immediately matching delta"s price. In 2008, delta had to abandon its simplifares program). Competition can be complicated: direct, indirect, and potential. Strategic groups and mobility barriers analysis that breaks down the structure of a market or industry into these constituent groups is called a strategic group analysis. Visualizing this group structure is an important component of competitive analysis because it identifies the major arenas of competition and who competes directly with whom. Barrier to mobility: any factor that limit the ability of a company to move between strategic groups. Knowing the competition: understand the competitive landscape, evaluate the competition, principles of competitive strategy, understand the market structure and competitive environment.
