Once a firm has completed the strategy formation process, it moves into the implementation stage. Often, this entails a series of competitive actions in order to establish, maintain, and increase market position. Factors that affect a firm’s decision to initiate competitive actions include first-mover motivation, organizational size, and product quality. Conversely, firms may wish to initiate a competitive response based on their competitors’ actions. These actions can be either strategic or tactical, and are often based on the size, stability, and financial position of competitors.
In a paper of no fewer than 1000 words, you must complete two tasks:
- Explain the concept of competitive action, and provide details about each of the factors that would affect the likelihood of a firm initiating a competitive action.
- Explain the process of initiating a competitive response. Differentiate between strategic and tactical responses, and explain what factors lead to a firm launching a competitive response.
Note: Outside research is required for this assignment. You must include no fewer than 5 outside sources (not including the textbook). These sources should be scholarly; appropriate sources include academic and industry trade journals. As graduate students, please refrain from using non-authoritative source such as internet blogs, websites without author names/credentials, etc. Be sure to properly cite all of your sources in order to avoid plagiarism. All submissions will be checked via Turn-It-In similarity detection software! Use APA style, as this is the preferred style for the Business field.