59:) and their current position vis-à-vis their goals. A wide gap between the two could mean the competitor is highly likely to react to any external threat that comes in its way, whereas a narrower gap is likely to produce a defensive strategy. The question to be answered here is: What is it that drives the competitor? These drivers can be at various levels and dimensions and can provide insights into future goals.
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important here to determine the competitor's realized strategy and how they are actually performing. If current strategy is yielding satisfactory results, it is safe to assume that the competitor is likely to continue to operate in the same way. The questions to be answered here are: What is the competitor actually doing and how successful is it in implementing its current strategy?
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of industry forces, it is likely to be ready with plans to counter any threats to its position. On the other hand, a competitor who has a misplaced understanding of industry forces is not very likely to respond to a potential attack. The question to be answered here is: What are competitor's assumption about the industry, the competition and its own capabilities?
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What sets this model apart from others is its insistence on accounting for the "implicit" factors such as culture, history, executive, consultants, and board's backgrounds, goals, values and commitments and inclusion of management's deep beliefs and assumptions about what works or does not work in the market.
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that ties competitor's capabilities to their assumptions of the competitive environment and their underlying motivations. Looking at both a firm's capabilities (what the firm can do) and underlying implicit factors (their motivations to follow a course of action) can help predict competitor's actions
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A competitor's strategy determines how it competes in the market. However, there could be a difference between the company's intended strategy (as stated in the annual report and interviews) and its realized strategy (as is evident in its acquisitions, new product development, etc.). It is therefore
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the competitor has about itself and its industry would shape strategy. This corner includes determining the competitor's perception of its strengths and weaknesses, organization culture and their beliefs about competitor's goals. If the competitor thinks highly of its competition and has a fair sense
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Firms are more often than not aware of their rivals and do have a generally good understanding of their strategies and capabilities. However, motivational factors are often overlooked. Sufficiently motivated competitors can often prove to be more competitive than bigger but less motivated rivals.
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and the drive to initiate a strategic action, its effectiveness is dependent on its capabilities. Its strengths will also determine how the competitor is likely to respond to an external threat. An organization with an extensive distribution network is likely to initiate an attack through its
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Despite its strengths, Porter's four corners model is not widely used in strategy and competitive intelligence. In a 2005 survey by the
Society of Competitive Intelligence Professionals's (SCIP) frequently used analytical tools, Porter's four corners does not even figure in the top ten.
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the competitor. This added dimension of understanding a competitor's internal culture, value system, mindset, and assumptions helps in determining a much more accurate and realistic reading of a competitor's possible reactions in a given situation.
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with a relatively higher level of confidence. The underlying assumption here is that decision makers in firms are essentially human and hence subject to the influences of affective and automatic processes described by
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well. Competitive cluster analysis of industry products in turn complements four corners analysis. Using such models that complement each other can help create a more complete analysis.
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through price drops. The questions to be answered here are: What are the strengths and weaknesses of the competitor? Which areas is the competitor strong in?
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This looks at a competitor's inherent ability to initiate or respond to external forces. Though it might have the
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and capabilities to determine future strategy, Porter's model additionally calls for an understanding of what
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However this model can be used in competitive analysis and strategy as follows:
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channel, whereas a company with strong financials is likely to
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