Determinants of Response Strategies in Factor-Market Competition

Baars, L.A.C.P. (2015) Determinants of Response Strategies in Factor-Market Competition.

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Abstract:To more specifically understand the interaction between companies in the factor market, this paper conceptually applies product-market competitive dynamics to the factor market. The effects of a competitive action in the factor market on the three dimensions of the Awareness-Motivation-Capability (AMC) perspective are explored, and proposed to determine the response strategy (do nothing, defending, counterattacking, or total war) of the company under attack. To illustrate the theory with practical examples, two case studies are conducted. Finally, further research suggestions are provided. This paper contributes to the scientific literature in explaining how product-market competition models might be applied to the factor market and thereby incorporating previous research into a new framework to understand competitive interaction between companies that compete in the factor market. From a managerial point of view, this research can be used as a guide to predict a competitor’s reaction to a certain competitive action that a company is planning to undertake.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/67506
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