Competing for Advantages: From Industry Analysis to Competitive Dynamics

Technical note on industry analysis and competitive dynamics. Excerpt UVA-S-0168 Rev. Jan. 28, 2016 Competing for Advantages: From Industry Analysis to Competitive Dynamics Strategy is about enabling value creation, and a company whose strategy emphasizes value creation for stakeholders should improve its competitive position. Managing this competition and understanding how firms compete for advantages are essential parts of a strategist's job. Two commonly used approaches for analyzing competition in strategic management are the Five Forces Industry Analysis and competitive dynamics. These two approaches are complementary, the former taking a macro view of industry structure, the latter a micro view of action-response; taken together, they provide a comprehensive understanding of business strategy and competition. This note is a brief summary of the two perspectives. . . .