Firms Making Competitive Moves Assignment Example | Topics and Well Written Essays - 500 words

Firms Making Competitive Moves - Assignment Example This study stresses that among the advantages of being a first mover, is especially when making the exceptional initial moves in a particular market that allow a specific firm to come up with a dominant position that other businesses strain to overcome. A sufficient example of this is the Kentucky Fried Chicken (KFC) that established a very strong bond with the officials of China in leading the Western Fast Foods, as they were the initial western restaurant that entered China first. Currently, they are still the leading firm in the rapidly growing market. Among the disadvantages, a first mover cannot be so certain about the likelihood of the customers in embracing the offerings that make the initial moves inherently risky.This paper declares that  a time a rival or even a competitor introduces a disruptive innovation that in most cases conflict the existing competitive practices for instance the emergence of online trading where the executives make informed choices from three main responses. First, they might think that the innovation could effectively replace the established offerings therefore choice on focus particularly on the traditional methods of business. Second, a firm could choose to overcome the challenge by attacking different dimension and perspective. Finally, simply a firm may decide to match the competitors’ direction of the move.  A Blue Ocean Strategy entails the creation of a new and untapped market instead of competition with rivals in an existing market.