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When strategies collide: Divergent multipoint strategies within competitive triads

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  • Upson, John W.
  • Ranft, Annette L.
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    Abstract

    As market barriers fall and market boundaries blur, firms are becoming increasingly broad in their scope of operations and markets. This expansion in a firm's scope intensifies competition as the interaction between rivals spreads across many markets. To succeed as a firm, managers must then take a multi-market approach to competition. Critical to success is an understanding of how rival contact across markets can affect a firm's competitive behavior. This understanding exists for competition between two firms; however, few firms face only one rival across multiple markets. We expand the focus on one competitor and explore configurations of competitive triads. We explain why triadic competition is more dynamic and deviates somewhat from dyadic competition, and set the foundation for exploring competition among a broader set of competitors.

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    Bibliographic Info

    Article provided by Elsevier in its journal Business Horizons.

    Volume (Year): 53 (2010)
    Issue (Month): 1 (January)
    Pages: 49-57

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    Handle: RePEc:eee:bushor:v:53:y:2010:i:1:p:49-57

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    Web page: http://www.elsevier.com/locate/bushor

    Related research

    Keywords: Competitive dynamics Multipoint competition Blind spots Competitive release;

    References

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    1. Bruce H. Clark & David B. Montgomery, 1998. "Deterrence, Reputations, and Competitive Cognition," Management Science, INFORMS, vol. 44(1), pages 62-82, January.
    2. Corwin D. Edwards, 1955. "Conglomerate Bigness as a Source of Power," NBER Chapters, in: Business Concentration and Price Policy, pages 331-359 National Bureau of Economic Research, Inc.
    3. Gripsrud, Geir & Gronhaug, Kjell, 1985. "Structure and Strategy in Grocery Retailing: A Sociometric Approach," Journal of Industrial Economics, Wiley Blackwell, vol. 33(3), pages 339-47, March.
    4. Fu, W. Wayne, 2003. "Multimarket contact of US newspaper chains: circulation competition and market coordination," Information Economics and Policy, Elsevier, vol. 15(4), pages 501-519, December.
    5. Hughes, Kirsty & Oughton, Christine, 1993. "Diversification, Multi-market Contact and Profitability," Economica, London School of Economics and Political Science, vol. 60(238), pages 203-24, May.
    6. Evans, William N & Kessides, Ioannis N, 1994. "Living by the "Golden Rule": Multimarket Contact in the U.S. Airline Industry," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 341-66, May.
    7. Hauser, John R & Wernerfelt, Birger, 1990. " An Evaluation Cost Model of Consideration Sets," Journal of Consumer Research, University of Chicago Press, vol. 16(4), pages 393-408, March.
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