Chan: speed and selective attack on SE
3 important questions on Chan: speed and selective attack on SE
Differences in competitive behaviour of SE and LE in US airline industry
- SE have a higher action prospensity and speed of execution, but lower visibility. (explanation: they need to be flexible, LE have slack resources and are inert)
- SE are less responsive to competitive attacks, however SE's responses are more visible then those of LE. (explanation: reaction is expected of LE, they need to protect reputation)
Results of article (after gather data from 28 airlines)
- In activity
- In visibility
- In speed
- SE were more active then LE in initiating competitive moves. SE should attempt to 'retain the competitive initiative' by engaging in competitive attack
- Responses of SE more visible then LE
- Speed of SE in executing actions seemed to be countered by LE in announing responses. LE announce quick to protect reputation, SE can be querrilla like as possible
- SE tend to hold fire, calculating well developed visible responses, LE act quick but in rather unexiting ways
Connection between visibility and responsiveness
- Greater degree of an action's visibility, the faster the competitive response
- the complexer, the more delayed the response
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