Response lags in the context of competitive strategy refer to the delay in a competitor's reaction to a firm's strategic moves. This delay can occur due to various reasons such as the time taken to analyze the move, devise a counter-strategy, and implement it. The firm making the initial move aims to maximize this response time to gain a competitive advantage. This concept is crucial in managing threatening moves and influencing retaliation in a competitive business environment.

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Competitive Strategy: Techniques for Analyzing Industries and Competitors

How do you out-perform competitors and acquire a better understanding of key profitability drivers in your industry? This book, by the legendary Micha...

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The key to managing threatening moves is to be able to anticipate and influence retaliation. Competitor analysis helps predict the likelihood, speed, and magnitude of the reaction. The firm will choose to make moves that give it maximum time before a competitor responds. Response lags can happen due to the following reasons:

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A manufacturing company can apply the concept of competitor analysis by studying the strategies, strengths, and weaknesses of their competitors. This can help them anticipate potential threats and opportunities. They can analyze their competitor's product quality, cost structure, distribution network, customer service, and technological advancements. By doing so, they can formulate strategies to outperform their competitors, such as improving product quality, reducing costs, expanding distribution networks, enhancing customer service, or investing in new technologies.

The themes of "Competitive Strategy" are highly relevant to contemporary business issues and debates. The book provides insights into how companies can outperform their competitors and understand key profitability drivers in their industry. These themes are crucial in today's competitive business environment where understanding and formulating effective strategies can be the difference between success and failure. The book's emphasis on anticipating and influencing competitor's moves is particularly relevant in the fast-paced and ever-changing business landscape.

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