Competitive Dynamics (Ch. 13)
What is the AMC framework?
This framework explains how firms respond to competitors based on awareness, motivation, and capability.
What is a competitive attack?
A firm lowering prices to gain market share is an example of this action.
What is organic growth?
Growing by improving your own resources and capabilities rather than buying another firm.
What is tacit collusion?
This type of collusion involves an unspoken understanding to avoid price wars.
What is competition policy / antitrust policy?
These policies outlaw collusive practices like price-fixing cartels.
What is a partnership / strategic alliance?
Two firms pooling resources to access a market is an example of this type of international growth path.
What is the EU Competition Commissioner?
This EU body enforces rules against anti-competitive practices such as price-fixing and market division.
What is cross-market retaliation?
This strategic response involves targeting a different market or product line of a rival instead of responding directly.
What is a merger or acquisition (M&A)?
This growth path lets firms enter new markets quickly by buying another company.