Strategy Dynamics Briefing 63: Rivalry example – low-fare airlines

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Many airlines struggle for profitability because fares are so transparent and customers can so easily switch. Only the limited number of services that less busy travel routes can support limit this otherwise frictionless movement of customers’ choice. The customer rivalry frameworks from briefings 50-53 are therefore directly applicable to airlines. In the full-service sector, some genuine loyalty to specific airlines is common, driven by frequent-flyer programs as well as by customers’ experience of reliability and service with specific firms. Loyalty ...

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Strategy Dynamics Briefing 60: Competing for staff

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Competition for staff is widespread, not only in corporate settings but in non-profit and public sectors too. Rivalry for highly skilled and experienced people can be so ferocious that it is sometimes known as the ‘war for talent’. Less-skilled staff can be scarce too, so rivalry for employees concerns most organizations at some time. Type-1 rivalry to hire new staff and type-2, to persuade staff to switch from competitors, dominate this issue, since it is rare for staff to work ...

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Strategy Dynamics Briefing 59: Competing through intermediaries

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Intermediaries give rise to powerful type-3 rivalry, both in B2C and B2B cases. Often, a key objective for suppliers is to capture more share of the intermediaries’ attention, so they promote the supplier’s product more strongly to the end-customer.
Attention” comes in various forms:

  • A consumer-goods producer wants retailers to allocate a larger share of shelf space to its product than to rival products in the same category.
  • Business supplies companies fight for more pages in distributors’ catalogues than competitors.
  • Insurance companies want ...
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