Models For Competitive Dynamics

Running head: MODELS FOR COMPETITIVE DYNAMICS 1

Models for Competitive Dynamics

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MODELS FOR COMPETITIVE DYNAMICS 2

Models for Competitive Dynamics

Competition across different industries has influenced the need for competitive dynamic

models across different industries to enhance competitiveness. Companies’ desire to become the

leaders or to gain competitive advantage over the rivals has resulted into different activities

including the concepts of destroy your business (DYB) and grow your business (GYB) models of

competitive dynamics. These strategies are coupled by the increased investment in the

information technology and the information system to make the competition more on the

efficiency and generic as compared to the rest (Eaton & Kilby, 2015). Therefore, the application

of DYB and GYB models of competitive dynamics as well as IT and IS investments give

different competitive advantages to the organizations that use them within the industry.

Different perspectives of destroy your business (DYB) and grow your business (GYB)

models

The concept of destroy your business (DYB) is usually used in very competitive

industries, where the affected companies engage in activities that results into identification of

weaknesses that impede competitiveness. DYB results into destruction of the current practices

and organizational culture, by placing the employees within the context of the rival company

within the industry. This result into identification of the weaknesses and strengths of the

company based on the assessment of the performance and dynamics in the rival companies

(Eaton & Kilby, 2015). The results from DYB model are used to improve the company in terms

of quality and quantity improvements, customer service, and employee welfare improvements.

This competitive dynamic model gives the business opportunity to assess its performance

from the perspective of other competitors and industry at large, with intention of

competitiveness, profitability, and enhanced customer services. It aims at achieving long-term

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economic advantage that would result into sustainability, competitiveness, and getting

competitive advantage in the industry (McGrath, 2013). The results from DYB would help to

improve the information system, social business strategy, and other aspects of competition within

the industry to achieve the long-term economic goals. In essence, this is more of a research that

helps the management to realize the company’s weaknesses and take advantage of its strength

when there is still time.

The results from the DYB enables the company to start the process of grow your business

(GYB), based on the available findings on the need to improve in certain aspects of the industry.

For instance, through the GYB competitive dynamic, the company comes up with ideal ways of

addressing the shortfalls and instituting the practices that could result into improving the stature,

competitiveness, and responsiveness of the company to various challenges identified. This

strategy is ideal as it makes the companies affected to reach out to the clients who are resistant to

recession, hooking more customers through the use of freebies, investment in the talents within

the industry, and finding alternatives to borrowing from banks (Chen & Miller, 2015). Business

that use the GYB competitive model are at a position where they can improve their competitive

advantage through the buying of competitors, launching of new products, employing best

employees, and launching of new and competitive products .furthermore, they have the powers

and potential to invest more on information technology and information system that would keep

them ahead of the rest in the industry.

Both DYB and GYB are ideal for companies in the competitive industries and give the

information which is essential for the improvement of competitiveness and planning for the

future ahead of the rest. In this regard, companies that would want explore more in the industry

and increase in size and influence often go for GYB since it offers the platform to target the

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wealthy clients who are resistant to recession (McGrath, 2013). Furthermore, GYB is suitable for

the organizations which plan to launch huge IT and IS investments through the strategies that

keep off the rivals and given them the room to control the clients. On the other hand, using the

DYB strategy offers the insightful information on the place of the company in the industry with a

view of improving the position through the identified weaknesses and strengths.

Comparing cannibalization and the DYB models of competition

Market cannibalization is a competitive strategy which enables the company to introduce

a new product that impedes the performance of another related product. The introduction of new

competitive product into the same market by the same company offers to kill the demand for one

of the products and increase the market concentration of the newly introduced. The companies

that use cannibalism strategy have to choose between either loosing competition to rivals or

losing the market to own products through the introduction of others (McGrath, 2013). Balancing

competition and cannibalization in the market is often challenging, where the companies have to

strategize on the best introduction strategies that would address the challenges observed, such as

introduction of either high-end or low-end products to control the situations and improve

competitiveness. In this regard, companies should prioritize cannibalization over competition

based on the impacts that it has in the industry.

Companies should consider introducing a new product into the market than allow for

competition in the industry by rivals. This has been observed in major companies such as Apple

Inc. which cannibalizes iPod through introduction of music features in the iPohne. Alternatively,

Kindle has cannibalized Brick and Mortal through the introduction of online publishing. This

strategy is almost similar to the DYB, except that it focuses more on increasing competition. On

the other hand, DYB is ideal for companies that require competitiveness within the industry

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through improvement on the weaknesses and strengths (Eaton & Kilby, 2015). DYB enables for

the introduction of new programs and strategies, while also eliminating the old one that are

dysfunctional and no longer offer competitiveness to the industry.

Changes in business and reassessment of IT

Information Technology is integral to the successful competitiveness of business across

the industries across the customer service, production, supply, and transactions. Therefore, any

change in business strategy should focus on the assessment and improvement of performance of

the IT systems within the organization (McGrath, 2013). Through the reassessment of the IT, the

company will establish the training requirement for employees to improve their competence and

quality output that will please the clients. Furthermore, use of information technology cannot be

ignored since it improves the customer experience and enhance communication and feedback

mechanisms for the general performance of the companies.

Social IT in relation to organizational strategy

Organizations can improve their competitiveness in the market through the use of social

IT especially in the management of interaction with clients, communication, and research

activities. Social IT should handle the collaborative activities across different stakeholders within

the internal and external environments and further appeal for the IT experts to use the concept to

improve the social presence and collaboration with the key stakeholders. For example, through

social networking, advertisements, and communication, the company is able to achieve

competitiveness and ability to improve its presence in the industry (Chen & Miller, 2015). This

is based on the alignment to the company’s business social business strategies, which are

essential in the long run. for the companies, it is important that they align their social IT goals

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with the strategies such as improvement of communication, research, and customer service to

improve the level of competitiveness.

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References

Chen, M. J., & Miller, D. (2015). Reconceptualizing competitive dynamics: A multidimensional

framework. Strategic Management Journal, 36(5), 758-775.

Eaton, D., & Kilby, G. (2015). Does Your Organizational Culture Support Your Business

Strategy?. The Journal for Quality and Participation, 37(4), 4.

McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as

fast as your business. Harvard Business Review Press.

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