Competitive Dynamics in Marketing
In the world of business and marketing strategy, competitive dynamics is an issue that is always interesting to be discussed by top executives and academics who wrestle world strategic management, marketing, and business. However, many of you who still lay about it
Competitive dynamics arise as a result of competitive actions and competitive responses, among many competing firms in a given industry. Such dynamics occur due to the changes in business environment that happen so quickly. Rapid change also caused a company must continuously monitor, at which point the company is located in a cycle. This needs to be done to know whether they are already on the right track or not.
Indeed, the competitive dynamics of this becomes very important at this time. The top executives must understand that within a certain timeframe, the company will experience a cycle. In this situation, it is impossible for companies to make strategic planning in the future only by relying on extrapolation of trends that occurred in the past.
One of the triggers of a very dynamic business environment is mainly due to rapid changes caused by the existence of innovation. If companies are not vigilant and complacent it will fall into a state of crisis. Related to this innovation, a company had a choice, to be innovators or if possible the company could exploit the innovations that have been made by competitors. Both innovations are necessary so the company is able to exceed the pace of change the business environment.
Then, after the company's competitive dynamics to understand what and where the company's position in the cycle journey, there are two things that should be done
First: the company must look at the resources available and what capabilities that the possessed, in addition the company also had to actually identifying what the core competencies in the company. In other words, companies should also really look at its internal condition.
Second: the company must study very carefully, or do an assessment on the situation outside the company itself or the external environment, both micro (micro-environment and macro-environment). In the field of micro, it can be analyzed by using five-force model of Michael Porter (the analysis model created by Michael Porter). On the other hand, in analyzing the macroeconomic field, the company must understand the effect on micro-inflicted on the field.