Researching of Competitive Dynamics Models


The market dynamics have constantly evolved and changed since the late 20th century. As a result, there has been intensified competition between the market leaders and followers in various industries. The most successful firms have invested in Research and Development (R&D) departments to design innovative models which distinguish them from their rivals. These competitive dynamics approaches include Grow Your Business (GYB), Information Systems (IS), Destroy Your Business (DYB), and cannibalization (Gupta 7). For example, the DYB tactic involves eliminating the company’s weaknesses and unproductive business units. Essentially, competitive strategies such as GYB, market cannibalization, and DYB have played an indispensable role in shaping firms’ long-term plans, maintaining market share, sustaining profitability, and withstanding stiff competition.

Juxtaposing the DYB and GYB Models

DYB and GYB represent two conflicting strategies that companies use to sustain their businesses and enhance profitability and competitiveness. The DYB model concentrates on constructive destruction, which results in robust business growth (Gupta 23). This approach seems risky because most firms seek to strengthen constant development rather than destruction. Notwithstanding, it is sometimes necessary to eliminate some processes or destroy some products to introduce new high-quality commodities or procedures. With the continuous advancement of technology, production methods constantly change, thus requiring companies to renew their processes to match the market needs. Consequently, the GYB tactic enables a business to exceed its limits and intensify its production and growth in the long term. In this era of information, firms can capitalize on their competitors’ shortcomings to outshine them in the market. Thus, disruptive inventions eradicate fruitless and ineffective processes and substitute them with improved and more efficient practices. The DYB technique can assist a firm in reinforcing its business competitiveness and improving overall performance.

The GYB approach involves identifying and investing in innovative ways of serving existing customers and reaching new ones, thus, contradicting the DYB tactic. Instead of destroying existing processes and products, GYB concentrates on strengthening them to meet the consumers’ tastes and other market dynamics. Most companies prefer this method because growth serves as an important sign of success. Investing in new opportunities enables a business to expand its operations, thus increasing its profitability (Wagner and Hollenbeck 27). In addition, the GYB model helps companies to capitalize on economies of scale, thus gaining a significant competitive edge against their competitors. It also assists in lessening costs per unit and multiplying savings across various business departments, such as marketing and purchasing. GYB strategy also spreads risks among different products, thus reducing external threats and influencing market prices. Consequently, it is a vital model that can improve profitability and competitiveness in the long run. The only similarity between DYB and GYB is that both concepts rely on research to make viable and rational business decisions.

Cannibalization Strategy

Market cannibalization occurs when a firm introduces a new product that attracts most of its existing consumers resulting in low demand for the original commodity. According to Kim and Chun, a company develops and markets a new good or service to inspire a few current customers to purchase it (8). However, it might not work as planned because clients may prefer the new product instead of the original commodity, resulting in market cannibalization. This technique is nearly similar to DYB because it somehow reduces the sale of the original product, possibly eliminating it from the market.

Nevertheless, it is important to understand that DYB arises from deliberate management decisions, while external factors cause market cannibalization. The latter depends more on innovation and creativity than the former. Consequently, market cannibalization is a more beneficial and efficient model for market leadership, development, and enhancing competitiveness than DYB because it stimulates businesses to sustain their operational evolution and invest substantially in innovations. An excellent example of market cannibalization happened when phone-manufacturing firms introduced digital cameras, which led to a decline in the purchase of Kodak cameras. Further, market cannibalization occurred when Apple introduced the iPhone 12 Pro, which charmed the customers leading reduction in the market of its original version of the iPhone 12. Thus, market cannibalization augments sales growth of the new products and lessens purchases of existing commodities.

Changes in Business Strategy and Reassessment of IS

Business strategy is a raft of explicit actions, goals, and plans explaining how an enterprise will compete in a specific market with one or several services or products. On the other hand, IS refers to an integrated range of components for gathering, processing, storing, and conveying knowledge and information (Pearlson et al. 29). IS facilitates the transmission of the firm’s mission and objectives, thus necessitating its reassessment to align with changes in business strategy. Firstly, IS helps to implement modifications that enhance the company’s performance in the long term. In some instances, managers are compelled to reevaluate the efficiency of the IS even before full-scale implementation of new changes affecting the business operations. The failure of IS to adapt to operational improvements may interrupt the production process leading to a decline in product quantity and quality.

Secondly, it is rational to reexamine IS to ensure it meets the employees’ needs to avoid their unpreparedness in accepting and adapting to changes. The lack of optimized IS can lead to customer dissatisfaction due to staff errors and delays (Tilly et al. 13). Lastly, IS reassessment is necessary because it completes the overall business strategy. Systems are often developed to help accomplish the current organizational needs by ensuring the smooth running of activities. Therefore, any change requires IS appraisal to determine its efficiency in completing new processes, promoting productivity, and improving the firm’s competitiveness.

Use of Social Information Technology

Social IT is a vital instrument in aligning IS and organizational strategies in the contemporary world. Tilly et al. argue that social networks help in strengthening marketing approaches because they offer a wide range of opportunities (11). For example, companies use social media platforms to create and enhance brand awareness because they can reach a large pool of consumers within seconds. Aligning IS tactics with social IT also boosts the interactions between customers, partners, and other stakeholders. According to Pearlson, the constant engagement of clients promotes loyalty and trust (51). Social IT can also strengthen collaboration between firms’ administrations, bloggers, online personalities, and advertisers who can help market products or services online. Every post or comment serves as an advert that can boost a company’s sales. Significantly, social networks offer the most cost-effective promotion strategies, and thus, aligning social IT with IS and organization policies helps promote competitiveness, increase sales, and improve overall profitability.


The business environment has become competitive in the modern world, especially with technological advancements. Managers must guide their companies in developing rational and practical plans to remain competitive and expand their market share. Examples of effective competitive dynamics models used in most successful organizations and businesses include GYB, DYB, IS strategies, and market cannibalization. Every approach may have its shortcomings, but it can result in positive outcomes when properly implemented. For instance, DYB tactic helps managers eliminate ineffective processes that do not add value to their businesses and develop new approaches that align with market needs and dynamics. Social IT also reinforces collaboration and inspires online marketing that attracts the attention of a large pool of customers within a short time. Therefore, administrators should select strategies that align with their organizational culture and goals to improve their business performance and increase profitability.

Works Cited

Gupta, Sunil. Driving Digital Strategy: A Guide to Reimagining Your Business. Harvard Business Press, 2018.

Kim, Jae-Cheol, and Se-Hak Chun. “Cannibalization and Competition Effects on a Manufacturer’s Retail Channel Strategies: Implications on an Omni-channel Business Model.” Decision Support Systems, vol. 109, 2018, pp. 5-14.

Pearlson, Keri E., Carol S. Saunders, and Dennis F. Galletta. Managing and Using Information Systems: A Strategic Approach. 7th ed., John Wiley & Sons, 2019.

Tilly, Roman, et al. “Towards a Conceptualization of Data and Information Quality in Social Information Systems.” Business & Information Systems Engineering, vol. 59, no.1, 2017, pp. 3-21.

Wagner, John A., and John R. Hollenbeck. Organizational Behavior: Securing Competitive Advantage. 3rd ed., Routledge, 2020.

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