An Empirical Study On The Competition Reaction Of The Saloon Car Industry In China

Facing the complex and dynamic competition environment, enterprise competition strategy research and practice must be more and more dynamic. The force of a certain strategy is not necessarily decided by the initial actions the enterprise takes, but by the enterprise's prediction exactness of the competitor's reaction. Also, the competition pattern depends on the reaction of the competitors, customers and other participators in the competition environment and the synthetical result of these alternative reactions as time goes by.In the dynamic competition environment, a good strategy is undoubtedly very important, but the reaction of the competitor can make its effect disappear forever. Thus, to some extent, a careful design of strategy is no better than the scientific prediction and analysis of the competitor's action and the effective reaction to it with best tactics.This article took saloon car industry as the research objective. An empirical analysis was implemented to find the general law of competition reaction.Firstly, through a literature review, we implored the factors influencing enterprise's competition reaction and the index for the measurement of competition reaction characteristics. On this basis, we developed a scale.Following, through the research on the competition reaction of saloon car industry in china from January 1,2003 to December 31,2004, we implored the competition reaction in the car industry by careful data analysis.Finally, we reached some valuable conclusions together with the implication for business practice and some suggestions for further research.