Lan Hailin- to develop strategies in a dynamic competition.docVIP

 PAGE \* MERGEFORMAT 12 Lan Hailin: to develop strategies in a dynamic competition Dynamic competition theory: market concentration Higher in case of strategic interaction Reporter: As far as we know, dynamic competition theory is that you first imported from abroad of an enterprise strategic management theory, you tell us the specific meaning of dynamic competition? Lan Hailin (hereinafter referred to as blue): Dynamic Competition means is that when the degree of market concentration increasing, the entire industry or market with only two or three companies to compete in an oligopoly situation that the competition between the two three companies the location of a particular phenomenon, such as Haier would like to fight refrigerator first, Kelon refrigerator would also like to fight first. Because a strong antagonism between them, competition has a dynamic nature, your actions is largely aimed at opponents, but also determines the opponent’s reaction to your strategic effect. We call this around a particular market or a position resulting from the competition as an object of study, to see how the two of them dynamic, interactive, study the laws of interaction. Narrow terms, the dynamic competition is that meaning. Reporter: So what issues Dynamic Competition? Blue: First is to determine the involvement of a war, you have to think about why you have to intervene. The second problem is that evaluations have the resources, the ability to intervene in the war. The third problem is that I want to beat him, he will hit me, that would constitute a rival. Sometimes you do not want him to become rivals. For example, Hisense inverter air conditioner, when introduced, do not hope that those who respond to a large air-conditioning plant, because opponents did not respond, and its inverter air conditioner can be sold. At the same time, Hisense also to other air-conditioning plant out of a dilemma, because if they are to respond, inverter air conditioner will heat up