The dynamics of competition: a conceptual analysis

Abstract

The literature on strategy recognises that a firm's intended strategy may differ from its realised strategy due to misjudgements about competitors' actions and/or reactions (Davis and Devinney 1997; Kotler 2003; Mintzberg 1978). The importance of competitor analysis to strategy formulation has resulted in a number of researchers attempting to identify competitors at the firm level (see, for example, Athiyaman and Go 2003; McGee and Thomas 1986). Since most research on this topic lack a priori theory to guide empirical analysis (Barney and Hoskisson 1990; Davis and Devinney 1997; Roberts 2001) this paper attempts to model competition at the firm level using concepts borrowed from learning theory, and decision sciences. Specifically, the shift in a product's competitive landscape as it moves from introduction to maturity is theorised.