The Evolution of Research on Competitive Rivalry

In this paper the authors focus on recent thinking on competitive rivalry that is not yet well represented in the marketing literature. Technology cycles are a key variable governing the form of competitive reactions likely to be taken. Multimarket participation is an important consideration in assessing the likelihood and speed of reaction. Agglomeration theory focuses on the positioning of new entrants and the effect on reaction. Competitive signals both intended and unintended are a key means of communicating with rivals before and after a market entry. Alliances may constitute a competitive reaction or, if in place, may affect the likelihood of reaction. Networks which create competitor interdependency have implications for reaction aggressiveness. In total, the authors suggest that these concepts have major consequences for reaction and defense when confronted by new entrants, new technologies, or new products.