Competitors are firms competing in the same market, offering products that are similar, while targeting specific customers in order to gain a competitive advantage. In this assignment you will demonstrate your understanding of how to create and maintain a competitive advantage, answer the following questions:
• What is market commonality?
What is resource similarity? What does it mean to say that these concepts are the building blocks for a competitor analysis?
• What factors affect the likelihood that a firm will take competitive action?
• What factors affect the likelihood a firm will initiate a competitive response to the action taken by a competitor?