Competition Theories Compete
It is never doubted by academic circles and business environments that the strength of competitive analysis, if not the top, is one of the most important critical success factors in creating and managing marketing strategies. The way a business adapts to competitive environments, characteristic of its focus being self-centered, competitor-centered, customer-driven or market driven (Day and Nebugandi, 1994), will define its place in the complex marketing arena.
However, different theories of competition seem to compete in offering better explanations for key macro and micro phenomena. In this paper, we attempt to review the different perspectives on The Comparative …show more content…
However, CATC, with its dynamic market definition, covers various competitive perspectives: resource-based view, market-based view, knowledge-based view, and relational-view etc. Resources are heterogeneous and include intangible assets like information and relations. Products and consumer needs and information are also heterogeneous and managers are not only quantity adjusters; they have to research, define and create market-based strategies. Therefore, the concept of competition in CATC deals with gaining comparative advantage.
A LOOK AT THE DIFFERENCE:
CATC & Other Theories of Exchange Paradigm
Even though CATC was criticized by academic environments for its similarities to prior competition theories and failure to introduce anything fresh to the competition world, it differs from other theories in certain points.
A SWOT Analysis
Although Hunt and Morgan's Comparative Advantage Theory of Competition is accepted to have made important contributions to marketing literature with their modern theory of competition, its validity and innovativeness has been questioned by academic environments. Table 3 shows some views that are in line with Hunt and Morgan and some that criticize them.
The main strength of CATC is its ability to take real life markets into consideration; the necessity of nonstop adaptation to changing market conditions. Simultaneously, locating resource-based view at the