Competitive Industry Dynamics：竞争和行业动态.pptVIP

Strategic Management/Business Policy Competitive Dynamics: Real Options Power Point Set 9b Competitive Dynamics Competitive dynamics: results from a series of competitive actions and competitive responses among firms competing within a particular industry. Mutual interdependence: results when companies recognize that their strategies are not implemented in isolation from their competitors’ actions responses. E.g., Coke versus Pepsi * Competitive Dynamics A first mover is a firm that takes an initial competitive action. Successful actions allow a firm to earn above-average economic returns until other competitors are able to respond effectively. In addition, first movers have the opportunity to gain customer loyalty. For instance, Harley-Davidson has been able to maintain a competitive lead in large motorcycles due to intense customer loyalty. Competitive Dynamics A first mover faces potential disadvantages: High risk; High development costs; and High demand uncertainty * Competitive Dynamics A “second mover” is a (second, third, fourth, etc.) firm that responds to a first mover’s competitive action often through imitation or a move designed to counter the effects of the initial action. BankOne was a fast second mover in Internet banking. New Balance is a successful second mover in the athletic shoe industry. * Competitive Dynamics Second mover advantages include: Reduction in demand uncertainty; Market research to improve satisfying customer needs; Learn from the first mover’s successes and shortcomings; and Gaining time for RD to develop a superior product. * Scenario Analysis -The Relationship Between Finance Strategy Traditional Evaluation Of Financial Projects Net Present Value or Discounted Cash Flow Analysis time CF + - Scenario Analysis -The Relationship Between Finance Strategy Differences Between Strategy and Finance: Finance: Payoffs are determ