Competitive Moves Competitive move is defined as a discrete action by a firm to improve or defend its position relative to that of its

rivals with in an industry. Different Competitive Moves Co-operative or Nonthreatening Moves. Threatening Moves. Defensive Moves. 1. Co-operative or Nonthreatening Moves Moves that do not threaten competitors goals are a place to begin in searching for ways to improve position. 1.1: Moves will be perceived as Nonthreatening IF Competitors do not even notice, because the adjustments are largely internal for the firm making them. Competitors will not be concerned about them because of their self-perceptions or assumptions about the industry and how to compete in it. Competitors performance is impaired little if at all measured by their own criteria. 1.2: 3 categories of Nonthreatening moves Firms position Competitors position (If they do not match). Firms position Competitors position (If significant number matches).

 Only Firms position match).

(Competitors will not

2. Threatening Moves Moves that would significantly improve a firms position do threaten competitors. 2.1: Consequence of Threatening Moves If If 3. Defensive Moves Moves that companies usually make to face the moves made by their competitors are called Defensive Moves. 3.1: Approaches to defense are Discipline as a form of defense. Denying a base. Commitment Types of Commitment 1. Commitment to prevent retaliation. 2. Commitment to deter threatening moves. 3. Commitment that the firm will not take no action or forgo an action.

1. 2. 3. Limitation of Commitment. Communicating commitment