Strategy Dynamics Briefing 51: Type-2 rivalry – capturing competitors’ customers

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Type-2 rivalry can be explained by taking the coffee store example from Briefing 50 forward in time to a point where all potential customers have been captured; that is, when the market is mature.
The two stores have charged the same expected price of $2.95 for a typical product and each has half of the market’s total of 5 000 customers.

Halfway through the year, the two stores make the same decisions as before: we lower our price to $2.80 and ...

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Why so many Tablet makers?

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This LinkedIn exchange asks why so many new entrants start up in growth industries when it’s obvious that most will fail. Another big case : during 2000-09 Europe added about 12 low-fare airlines – maybe 20 started and 8 failed? No – 60 started and 48 failed!

But I guess the industry dynamics make some kind of sense. In early years, the profit opportunity looks great (early airlines made ...

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