Competitive Rivalry and Competitive Dynamics.pptx

This is about competitive rivalry

1. Competitive Rivalry and Competitive Dynamics

2. Competitors: Competitors are businesses or organizations offering similar products or services to the same target market. In the Philippine tourism and hospitality sector, this could include hotels, resorts, airlines, travel agencies, and even local tourist attractions competing for both local and international tourists.

3. Example: Boracay’s beachfront hotels compete with resorts in El Nido, Palawan for eco-tourism travelers.

4. Competitive Rivalry: This refers to the intensity of competition between businesses in the same industry. In the Philippine context, Cebu Pacific and Philippine Airlines (PAL) showcase strong competitive rivalry, fighting for market share through pricing strategies, service quality, and route availability.

5. Competitive Behavior: Competitive behavior involves the specific actions and reactions businesses take to improve their market position. For instance, a hotel in Cebu offering promotional rates during the Sinulog Festival is engaging in competitive behavior to attract more tourists.

6. Competitive Dynamics: Competitive dynamics encompass all competitive actions and reactions among firms within an industry over time. This includes trends like the growing eco-tourism movement in Siargao , where businesses continuously adapt to sustainability demands to stay competitive.

7. Market Commonality and Resource Commonality These are the building blocks of competitor analysis , helping businesses understand their competition better..

8. Market Commonality: This refers to the extent to which firms compete in the same markets. For example, Shangri-La Boracay and Henann Resort Alona Beach in Bohol have market commonality because they both target luxury tourists visiting popular beach destinations in the Philippines.

9. Resource Commonality: This pertains to the similarity of resources (like technology, staff expertise, or capital) that competitors use. For instance, large hotel chains like Seda Hotels and The Peninsula Manila share resource commonality in terms of high-end facilities, skilled hospitality professionals, and strong brand recognition.

10. Drivers of Competitive Behavior: Awareness, Motivation, Ability

11. Awareness: A firm’s understanding of its competitors’ strategies and actions. For example, a resort in Panglao, Bohol must be aware of the promotional campaigns of rival resorts in Dumaguete to adjust its marketing tactics effectively.

12. Motivation: The company’s desire to act or respond based on the perceived threats or opportunities. If a new luxury hotel opens in Makati , nearby competitors like Raffles Hotel might be motivated to upgrade their amenities or offer loyalty programs to retain guests.

13. Ability: The firm’s resources and capabilities to take action. A small boutique hotel in Vigan might lack the financial ability to compete with larger chains in terms of advertising, but it can focus on personalized customer service as a competitive advantage.