A Study On Enterprise’s Competitior Based On Dynamic Competition Theory

From ancient times till today, it is universally acknowledged that triumph of the war decisively hinges on how well you know about your opponent. Because of the booming development of science and technology and the increasingly keener market competition, the strategic interaction among competitors has distinctly been accelerated. Unlike dynamic competition theory, it is only under a static condition that the traditional static competition theory works out competition strategy according to the market and the current situation of competitors, rarely taking the opponent’s potential counterattack into consideration, which therefore causes the competitive advantage rather difficult to maintain. Dynamic competitive advantage can be defined as enterprise’s capability of winning superiority in an ever-changing market environment, and the competitor analysis based on dynamic competition theory is one of the measures we can take to obtain this kind of capability. In what follows, I will try to locate the competitor analysis into dynamic competition theory and discuss how to predict the characters and internal rules that the opponent possesses under a dynamic environment, and attempt to carry out empirical researches on dynamic opponent recognition and competitive behavior of multi-market opponent. This paper has altogether six parts, including introduction and five chapters.Introduction. Since it is factual that present competitive environment in China has turned from static to dynamic, and that interactive dynamic competitive behavior between enterprise and its opponent has become a necessity for enterprise strategic construction, I, in this paper, choose opponent as my penetration point and apply game theory, behavior theory and mutual evolution theory and other dynamic competitor research tools to predict opponent behavior and analyze the corresponding behavior theory. Furthermore, empirical analysis is used to perform an experimental research on dynamic opponent interaction and recognition. A comprehensive introduction to the relevant research home and abroad is also made in this part of the paperChapter 1 lays particular stress on literature review. Regarded as the frontier of economics and management science which springs up in recent years, dynamic competition theory emphasizes the internal rule and the cause of the enterprise competitive behaviors. In this chapter, at first the process of the development of DCT and its advantages compared with traditional static strategy are analyzed. Then DCT separately based on three respects, i.e. enterprise competitive behaviors, environment analysis and network organization is introduced. And the essential theories and patterns of dynamic competition are also discussed. In competitor analysis framework elaboration, I focus on Michael Porter’s competitor analysis framework and four frequently used models, namely industrial analysis model, SWOT analysis model, PIMS analysis model and value chain analysis model. Apart from these, a dynamic competitor analysis framework, which categorizes the competitors according to the indices of product market commonality and resource similarity, is introduced at last.Chapter 2 mainly introduces the theories and methods of enterprise competitor analysis in a dynamic environment. Firstly, I define the dynamic competitor and dynamic competitive behavior discussed in this paper. Secondly, on the basis of the definition, I bring up the significance of understanding the form of the leading competition relationship in a specific market during competition analysis and introduce three basic statistic methods for competition relationship determination.With the relationship determined, the administrator will usually use the economics model, behavioral science model as well as mutual evolutionism model to make a thorough analysis of the choice and thinking pattern of his competitors so that he can better predict their reactions. During this analysis, the study of the substitutive product or service is a significant way of determining competitor’s domain, which can be carried out from the respect of consumers, suppliers or strategic groups. Through the analysis methods based on game theory, like balanced point strategy, backward summarization, output game analysis and onetime and repeated game analysis, we can help the enterprise to predict competitor’s dynamic behavior with more accuracy and efficiency.Chapter 3 emphasizes the behavior and strategy of enterprise competitor in a dynamic environment. Under such conditions, the efficiency of dynamic competitive strategy depends to a great extend on competitor ability prediction and it is a key link for the enterprise to predict competitor’s reaction through the characters of competitive actions which are already taken, person who takes action and competitors who have been affected. Therefore the administrator is suggested to build a decision-making model of competitor reaction according to competition attitude, extend, speed, domain and weapon, and choose the corresponding attitude at the same time. Face to face with its competitor, the enterprise can either gain the initiative by striking the first blow or send messages carrying different competitive strategies. Besides, flexible and rigid commitment strategy may also be applied for various purposes.In Chapter 4, an empirical research of the recognition of enterprise dynamic competitor is carried out. Many scholars have noticed that in an overlapping market, certain external factors play an extremely significant role in competitive aggressiveness, one of which is the effect of multi-market relevance among enterprises. In this chapter, applying two indices of market commonality and resource similarity, I try to use the dynamic competitor analysis framework which was put forward by Professor Chen Mingzhe and conduct an experimental research on the competitor recognition and competitive behavior of Chinese automobile companies, to be more specific, Dongfeng Peugeot Citroen Automobile Company as target enterprise and other 14 automobile companies as hypothetic opponent enterprises. In this phase of research, cluster analysis is applied to calculate the enterprises which share market commonality with Dongfeng Peugeot Citroen Automobile Company, while matching analysis is used to find out the enterprises which share resource similarity. Then the statistic result is categorized from 2 dimensions to recognize the dynamic competitors.Chapter 5 demonstrates an empirical research of multi-market dynamic competitive behavior is accomplished. Firstly, on the basis of the set of dynamic opponent, a further empirical analysis of opponent behavior is carried out and three hypotheses are made:the more frequently multi-market contact happens, the less competitive similarity will be, and thus the competitive aggressiveness will gradually reduce; under a relatively high contact frequency, the increase of enterprise resource similarity will reduce the competitive similarity which will result in the decrease of competitive aggressiveness; the competitive aggressiveness of the first type of opponent and the target enterprise will be weaker than the second type of opponent. Secondly, relative activity specimens of opponent enterprise are collected, competitive actions of each opponent are calculated separately with content analysis, and internal market competition rule is discussed. Thirdly, through calculating the Euclidean distance and Pearson correlation coefficient, distance statistics is applied to find out the dissimilarity and similarity of competitive behavior between Dongfeng Peugeot Citroen Automobile Company and the opponents, which are then related to competitive aggressiveness to judge the validity of the preceding hypotheses.Chapter 6 is the chapter of conclusion and prospect where the ideas of this paper are clearly and logically presented, the limitation and inadequacy existing in the research is pointed out and a prospect is made accordingly.