Competition

Anne Marie Knott

doi:10.1057/978-1-137-00772-8_464

Competition

Anne Marie Knott

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

Abstract

There are two forms of competition relevant to strategists. Static competition, which receives the bulk of attention, utilizes traditional industrial organization (IO) economics and game theory to link industry structure, firm behaviour and profits. While conditions exhibiting positive profits are a win for strategists (Porter’s five forces), they are a loss for society (inefficient resource allocation) and are relatively rare (<4% of firms). The more prevalent form (>52% of firms) is dynamic or innovation competition (Porter’s diamond). This dynamic competition occurs in structures which otherwise appear perfectly competitive. Moreover, it provides a win-win for firms (higher market value) as well as society (economic growth).

Original language	English
Title of host publication	The Palgrave Encyclopedia of Strategic Management
Publisher	Springer Science+Business Media
Pages	289-293
Number of pages	5
ISBN (Electronic)	9781137007728
ISBN (Print)	9781137491909
DOIs	https://doi.org/10.1057/978-1-137-00772-8_464
State	Published - Jan 1 2018

Access to Document

10.1057/978-1-137-00772-8_464

Cite this

@inbook{a5ed2f7828e94dcbb038ba33b9ed8912,

title = "Competition",

abstract = "There are two forms of competition relevant to strategists. Static competition, which receives the bulk of attention, utilizes traditional industrial organization (IO) economics and game theory to link industry structure, firm behaviour and profits. While conditions exhibiting positive profits are a win for strategists (Porter{\textquoteright}s five forces), they are a loss for society (inefficient resource allocation) and are relatively rare (<4\% of firms). The more prevalent form (>52\% of firms) is dynamic or innovation competition (Porter{\textquoteright}s diamond). This dynamic competition occurs in structures which otherwise appear perfectly competitive. Moreover, it provides a win-win for firms (higher market value) as well as society (economic growth).",

author = "Knott, \{Anne Marie\}",

note = "Publisher Copyright: {\textcopyright} Macmillan Publishers Ltd., part of Springer Nature 2018",

year = "2018",

month = jan,

day = "1",

doi = "10.1057/978-1-137-00772-8\_464",

language = "English",

isbn = "9781137491909",

pages = "289--293",

booktitle = "The Palgrave Encyclopedia of Strategic Management",

publisher = "Springer Science+Business Media",

}

TY - CHAP

T1 - Competition

AU - Knott, Anne Marie

N1 - Publisher Copyright: © Macmillan Publishers Ltd., part of Springer Nature 2018

PY - 2018/1/1

Y1 - 2018/1/1

N2 - There are two forms of competition relevant to strategists. Static competition, which receives the bulk of attention, utilizes traditional industrial organization (IO) economics and game theory to link industry structure, firm behaviour and profits. While conditions exhibiting positive profits are a win for strategists (Porter’s five forces), they are a loss for society (inefficient resource allocation) and are relatively rare (<4% of firms). The more prevalent form (>52% of firms) is dynamic or innovation competition (Porter’s diamond). This dynamic competition occurs in structures which otherwise appear perfectly competitive. Moreover, it provides a win-win for firms (higher market value) as well as society (economic growth).

AB - There are two forms of competition relevant to strategists. Static competition, which receives the bulk of attention, utilizes traditional industrial organization (IO) economics and game theory to link industry structure, firm behaviour and profits. While conditions exhibiting positive profits are a win for strategists (Porter’s five forces), they are a loss for society (inefficient resource allocation) and are relatively rare (<4% of firms). The more prevalent form (>52% of firms) is dynamic or innovation competition (Porter’s diamond). This dynamic competition occurs in structures which otherwise appear perfectly competitive. Moreover, it provides a win-win for firms (higher market value) as well as society (economic growth).

UR - https://www.scopus.com/pages/publications/105013178250

U2 - 10.1057/978-1-137-00772-8_464

DO - 10.1057/978-1-137-00772-8_464

M3 - Chapter

AN - SCOPUS:105013178250

SN - 9781137491909

SP - 289

EP - 293

BT - The Palgrave Encyclopedia of Strategic Management

PB - Springer Science+Business Media

ER -

Competition

Abstract

Access to Document

Other files and links

Fingerprint

Cite this