A Generic Model of Competitive Dynamics

Abstract

Using catastrophe theory, this article presents a generic model of competitive dynamics that allows for the integration of structural (industry inertia) and process (relative competitive force) components of competitive dynamics found in the marketplace. More specifically, this article presents a cusp catastrophe model to account for the variety of ways changes in competitive position can occur among competing businesses in an industry, and it builds on the growing body of catastrophe applications to organizational and managerial contexts.

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