MODELS FOR COMPETITIVE DYNAMICS
According to Pearlson, K. E., and Saunders, C. S., (2013): competition has, since the 90s, led to wider gaps between industry leaders and laggards. There are more “winner take all” environments and greater churns among industry sector rivals. We have witnessed sharp increases in quality and quantity of IT investments. We’ve seen striking competitive dynamics, particularly in sectors that spend the most on IT. Some of the competitive dynamics models include the Destroy Your Business (DYB) strategy, the Grow Your Business (GYB) strategy, the Information System (IS) and strategic advantage, and the social business strategy. (pg. 31)
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Other companies entice people with freebies to lure them in. If this ploy work, the customer will probably purchase next time. An example of this would be similar to a magazine company giving you a year’s subscription for half price. The don’t wait for banks strategy is basically saying if the bank is not willing to give you a loan do what you have to do to get the money. Its people who take out second mortgages, borrow from 401ks, college funds and etc. just to get their vision up and running. Investing in the talent is just you going out and paying the money for those people with those 10+ years of experience. Even though you are a small company, with that talent, you will be successful because the quality of the work will speak for itself.
Cannibalization is the decreased demand for an existing product that occurs when its vendor releases a new and similar product. (Rouse, M., 2007) For example, Sony puts out the PS4 (PlayStation 4), Sony knows the sells for the PS3 will suffer or decline because it is less demanding. I think DYB is a better strategy because you are actually breaking everything down to the core to understand your weaknesses so you can improve your company. You can release a new product every month but if you don’t understand what your weaknesses are you will never improve your company. For example, 3 video game companies, Nintendo, Sony and Microsoft, competing to be the better video supplier. Nintendo is becoming obsolete to Sony and Microsoft after being around for years. Nintendo had to figure something out so they could be relevant again. That’s...