Author : Ami Fitri Utami, SE., MSM
Moreover, company also facing either a predictable or uncertain conditions is different action. In predictable environment, environment variable are held constant and suggesting an evolutionary, incrementally changing competitive situation and not a revolutionary. On the other side, uncertain conditions were called Schumpeterian shocks involving the process of creative destruction of existing technological understandings, for example; the emergence of a revolutionary new technology or the unexpected entry of a new competitor from unrelated industry. By combining the above two dimensions presented two matrix of different rivalry model applied (Furrer and Thomas, 2000).
Based on Figure.1 in game theory model assumptions are valid when the environment is predictable and a few decision variables are involved. Moreover, when the condition is uncertain and there are only few decision available, the use of scenarios, simulation and system dynamics are takes into account. Moreover, when company’s decision choice is varied but the environment conditions are predictable, the use of warfare models and multipoint competition should be determined. Lastly, when the condition is uncertain and the choice of action is highly varied, the matrix aimed to use framework as the best analyzing tools.
Furrer, O., & Thomas, H. (2000). The rivalry matrix:: Understanding rivalry and competitive dynamics. European Management Journal, 18(6), 619-637
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