Competitor

analysis and
inter-firm rivalry
Tianxu Chen

Competitors: Luxurious
cars

Competitor identification
A

Process

Price
Productsensitivity
innovation
Low

High

Competitive landscape in car

industry

Sedan

SUV

Product

Sporty

Firms choice of
Markets
Market 1

Firm 2

Market 2
Market 3
Firm 1
Market 4

Firm 3

Market 5
Market 6

Multimarket competition
Market commonality

Firms resources
Resource 1

Firm 2

Resource 2
Resource 3
Firm 1
Resource 4

Firm 3

Resource 5
Resource 6

Resource similarity

Competitor analysis:
Meijer

Competitor analysis:
Wal-Mart

Competitor analysis:
Target

Competitor analysis
Northeast

Target

South
Midwest
Wal-Mart
West

Intl markets

Meijer

Resource similarity
Intl experience

Target

National
centers
Trucks
Wal-Mart
Stores

Meijer

Supplier
relations
Logistics

Resource similarity

Competitor Analysis

Airlines
Majors

LCCs

Region
als

Routing
system

Hub-andspoke

Point-to-point

Short-andmedium haul

Flights

Intl /
domestic

Domestic

Regional

Airport

Hub

No hub

No hub

Geographic
coverage

Worldwide /
various
domestic
destinations
Long range /
middle
range / short
range

Limited
domestic
destinations

Regional
destinations

Middle range

Short range

0.11

0.06

0.07

Aircrafts

CASM

Business models in the airline

industry
Hub-andspoke

Point-topoint

Airport costs

High

Low

Network
coverage

High

Low

System
complexity
Aircraft
standardizati
on

High

Low

Low

High

Alliances

High

Direct flights

Low

Low

High

JetBlue routes

Southwest route map

American Airlines route

map

Delta route map

Competitor analysis
High
Market
Commonali
ty

Low

Low

High

Resource
Similarity

Major versus LCC

(strengths and weaknesses)
Majors
Strengths

Networks
Comprehensive
service

Weakness

Cost structure
Complexity

LCCs
Costs
Quality service

Networks
Limited services

Action and response

Competitor
analysis

Awareness
Motivation
Capability

Action
/Response
Likelihoo
d
Speed
Type
Magnitud
e
Domain

Action - response
A

nd
o
sp
e
R

undertakes an

attack

nd
o
sp
e
R

Offset
efficacy of
As action

No act
ion

B
No
act
ion

po
Res

No

nd

acti

Intensified
competition

on

Continued
loss in MS

One time
loss in MS

Payoffs in competitive
interaction
A, B is deciding on price cut
A cuts price, B
B cuts price, A
A does not cut
B gets 10
A cuts price, B

does not: A gets 20, B gets 0

does not: B gets 20, A gets 0
price, B does not cut price: A gets 10,
cuts price too: A gets 1, B gets 1

A
cuts

no

1,1

20,0

0,20

10,10

cuts

no

Rivalry between American

Airline and JetBlue

JB

Attack

A
A

No
action

Market share loss

Reputation
More attacks by JB &
LCCs
No immediate costs

Price
war

Cost structure
Difficult financial
situation
Chain reaction
Drive JB out
Show determination
Network advantage
Postpone costs
Overall revenue loss
Respond by other
majors

Promotion
package