What is the role of competitive dynamics within the context of strategic business planning?
Competitive dynamics refers to “…all competitive behaviors—that is, the total set of actions and responses taken by all firms competing within a market” (Hitt, Ireland, & Hoskisson, 2009, p. 128). Organizations function within one of three market cycles, slow, fast, or standard. Competition can be difficult to imitate and therefore would operate in the slow-cycle market. This market allows a company to retain competitive advantage for a longer period. However, a fast-cycle market is very difficult to maintain. Changes occur so rapidly that holding an advantage is virtually impossible. Ina standard-cycle market, companies can maintain competitive advantage by continually adapting to changes.