Optimal Competitive Strategy Research Articles

Strategi Persaingan Pemasaran Indomaret dan Alfamart di Salatiga Menggunakan Game Theory

Indomaret and Alfamart are minimarket businesses that are currently experiencing significant growth, especially in the city of Salatiga. Each company strives to achieve maximum profit, and thus, it is essential to determine the most optimal competitive strategy to attract customers. This research was conducted using a questionnaire to understand what influences consumers in choosing a minimarket for shopping, providing valuable insights for determining minimarket strategies. Game Theory is employed to represent the respondents. The results of the study indicate that Alfamart will employ a location-based strategy in their stores, while Indomaret will utilize discount and promotion strategies for their easily accessible minimarkets.

Price-cutting or incentive? Differentiated competition between regional asymmetric ports

In the process of port integration, the competition between ports in overlapping hinterlands has intensified. Ports adopt differentiated strategies to compete, such as incentive strategy and price-cutting strategy. To analyze the optimal competitive strategies for asymmetric ports in the same region, this article develops a game theory model for port competition between superior and inferior ports. Different from the traditional price competition in ports, this article innovatively explores the market mechanism of incentive strategies based on the actual operation of ports. It also considers the economic status and reputation advantages of ports. Results show that if superior ports follow inferior ports to adopt the price-cutting strategy, it will lead to the prisoner's dilemma. And incentive strategies are the dominant strategies for superior ports, which has two effects: service quality effect and price distortion effect. Incentive strategies are conducive to incentivizing shipping companies and improving port profits.

Analysis on the influence of retailer's introduction of store brand under manufacturer's product line strategy

<p style='text-indent:20px;'>As the introduction of store brand (SB) by retailers becomes more common, national brand manufacturers (NBM) in the market often respond with a product line strategy. Then how should retailers decide their product lines under the situation that NBM adopt product line strategy? Under the manufacturer's product line strategy, this paper compares and analyzes three competitive strategies for retailers to introduce high-end SB, low-end SB and SB product line. The results show that: First, no matter what kind of competition strategy the retailer adopts, (1) the introduction of SB occupies the market share of NB; (2) the retailer gains the highest unit income from the high-end products of NB manufacturers. Second, the relationship between production cost and encroachment effects directly affects the retailer's choice of optimal competitive strategy and the manufacturer's preference for its competitive strategy choice. Finally, from the perspective of profit maximization, the optimal choice for retailers is the product line competition strategy, but this strategy is not obvious compared with the high-end competition strategy. Therefore, when retailers introduce product lines, if they are effectively threatened by national brand manufacturers (for example, NBM refuses to provide national brands to retailers), retailers may choose the suboptimal strategy, that is, to introduce store brand high-end products. When the high-end products of store brands are better than the low-end products of national brands and the production cost of products is relatively high, this strategy just meets the expectations of national brand manufacturers for retailers to introduce strategies.</p>

Optimal competitive capacity strategies: Evidence from the container shipping market

For nearly two decades, ocean carriers have been locked in an arms race for capacity, which has led to huge losses for many and even bankruptcy for some. We investigate the nature of this investment race by studying a long-term capacity investment problem in a duopoly under demand uncertainty. In our model, two firms make sequential capacity decisions, responding to each other’s current and future capacity. We consider two types of strategies which differ in terms of how a firm considers the opponent’s future capacity in its own strategy: a proactive strategy where the firm assumes that the opponent will respond using a certain strategy, or a reactive strategy where the firm assumes that the opponent’s future capacity remains unchanged. In the proactive case, we allow the firm to have different assumptions on the opponent’s strategy, representing different amounts of information the firm has on the opponent. For each type of strategies, we derive the firm’s optimal decisions on both the timing and size of capacity adjustments, specified by an array of intervals for the optimal capacity in a given capacity space in each period. Using detailed data from the container shipping market (2000–2015), we illustrate how to plan competitive capacity investments, following our model. By comparing the optimal decisions specified by our model with the reality, we show that the realized capacity decisions of the leading carriers, which were often questioned as irrational, are close to optimal, assuming these carriers follow proactive strategies. By revealing the underlying structures of different strategies, that is, the stayput intervals, we show how a specific strategy brings value to firms under competition. Based on our results, we provide practical guidelines to carriers and firms which operate in a similar competitive market for implementing an effective competitive capacity strategy.

Optimal competition strategy analysis of China Railway Express based on evolutionary game theory.

In the context of the Belt and Road Initiative, China Railway Express achieved rapid development. Determining how to achieve effective marking and determining how to adopt the optimal competitive strategy are the main challenges for CR Express operators. By choosing long-distance transportation as the research object, this research established a competitive model between CR Express and maritime transportation based on game theory. First, we determined the participants of this competition. By dividing common goods into the categories of high-value and high-time-sensitiveness, high-value and low-time-sensitiveness, low-value and high-time-sensitiveness, and low-value and low-time-sensitiveness, the model was used to simulate four situations and to obtain optimal strategies for operators. For CR Express, it was always effective to adopt a service optimizing strategy to improve the service level and earn market share. For maritime transportation, this strategy was effective only for high-value and low-time-sensitiveness goods as well as low value and low-time-sensitiveness goods. Therefore, transportation service suppliers should make competitive strategies based on different good types, and it is effective to use differentiation strategies to earn market share and improve competitiveness only for suitable types of goods.

Optimal Competitive Capacity Strategies: Evidence from the Container Shipping Market

Optimal Competitive Capacity Strategies: Evidence from the Container Shipping Market

METHODOLOGY OF FORMATION OF STRATEGY FOR DEVELOPMENT OF MACHINE BUILDING ENTERPRISES ON THE BASIS OF VALUE COMPETENCIES IN THE CONDITIONS OF GLOBALIZATION

It is established that an effective development strategy contributes to the rapid adaptation of enterprises to changes in the environment and conditions of globalization, and vice versa, the development of globalization processes allows to maintain a competitive level of entrepreneurship. The result of the work should be a focused strategy of the enterprise, ie the concept is developed and defined by it a system of measures aimed at achieving competitive advantage. Therefore, the development of an effective competitive strategy for all enterprises is an important necessity and has undeniable practical value. However, it is important to note the difficulty of choosing the optimal competitive strategy from a variety of strategies, provided that all important aspects are taken into account. The next step of the study should be to develop a model of effective choice of competitive strategy, which takes into account a number of factors, allows for critical quantitative and qualitative analysis of strategic alternatives and involves the use of optimal tools. This will form a truly competitive strategy of the enterprise and ensure its successful practical implementation. Speaking about the choice and feasibility of a competitive strategy, it is important to mention the value chain of the company’s product. The main goal of each enterprise is not just its survival in the market, but stable operation and constant economic growth. To achieve this goal, it is necessary to develop an effective development strategy on the basis of which to create and implement competitive advantages. All this will give the company the opportunity to answer vital questions: where to operate (in what industry or in which markets), how to allocate resources, how to compete effectively with other companies, how to develop stably in the future.

THE PROCESS MANAGEMENT OF ENSURING THE ENTERPRISE COMPETITIVENESS IN THE CONDITIONS OF ECONOMIC PROCESSES INFORMATIZATION

Abstract. The purpose of the research is to develop a mechanism of process management of ensuring the enterprise competitiveness of the enterprise in terms of the economic processes informatization. The following general scientific and applied research methods were used in the research process: analysis and synthesis, deduction and induction were used in the process management of determining the methodological basis of the process management of ensuring the enterprise competitiveness; systematization and generalization in the process of clarifying the purpose, object and subject of the process management of ensuring the enterprise competitiveness; the method of abstraction and formalization — to substantiate the conceptual provisions of the process management mechanism of ensuring the enterprise competitiveness in terms of the economic processes informatization; monographic methods — for in-depth study of the tasks; abstract-logical methods — for theoretical generalization of research results and formulation of conclusions and suggestions. The suggested mechanism for the process management of ensuring the enterprise competitiveness in terms of the economic processes informatization allows to determine the level of resource potential and a better choice of the optimal competitive strategy of the enterprise development, and decision making will more precisely justify specific measures to strengthen the market position. The practical significance of the study is, first of all, to build a scheme for the process management of ensuring the enterprise competitiveness of in terms of the economic processes informatization, which creates prerequisites for a responsible and sound policy to improve the management of competitiveness. Originality lies in substantiating the structural elements of the process management of ensuring the competitiveness of the enterprise in terms of the economic processes informatization that affect and determine measures to improve the management of the enterprise competitiveness, which combines the study of active business processes, financial support and information support. Keywords: mechanism, potential, management functions, management principles, competitiveness, resource potential, competitive strategies. Formulas: 0; fig.: 3; tabl.: 0; bibl.: 23.

Competition dynamics in Nigerian aviation industry: a game theoretic approach

BackgroundThis paper develops a game theoretic model that analyses the dynamics of competition among the leading domestic aviation firms in the Nigerian aviation industry. It probes the abilities of the prisoner dilemma to describe the subjective behaviour of the firms, which provide a yardstick for assessing the optimal competitive strategies available to the firm to survive the business environment.ResultsThe solution of the game provides different optimal competitive strategies for the firms. While findings show that Aero Contractors placed more weight on flight pricing to survive in the industry, Arik Air needed to retain non-pricing competitive strategy to remain the leading domestic aviation firm in Nigeria.ConclusionBased on our findings, we conclude that if both firms stick to the optimal strategy, they would both share the market.

ВЫБОР ОПТИМАЛЬНОЙ СТРАТЕГИИ НА РЫНКЕ С СОВЕРШЕННОЙ КОНКУРЕНЦИЕЙ

This article discusses the issue of choosing the optimal competitive strategy in markets with perfect competition. In the context of the rapid development of digital technologies, more and more market segments are subject to commoditization, which leads, on the one hand, to an essential depersonalization of suppliers of goods, works and services, and on the other hand, to the choice made by the consumer solely on the basis of price criteria. Over the past two decades, there has been a market segment in the Russian economy that is inherently close to perfectly competitive markets – the sub-federal debt market of the Russian Federation. The structure of the subfederal debt market, formed by numerous suppliers (credit organizations) and consumers (constituent entities of the Federation), and transparent bidding mechanisms existing under the Russian antitrust laws, combined with the uniformity of the goods being traded (cash loan) make it possible to consider it a market with perfect competition. But, unlike the classical commodity market, credit market transactions are characterized by the duration of the active interaction of the creditor (supplier) and the debtor (consumer), since the loan is provided for a certain period, after which it must be repaid with payment of all interest due. Thus, the behavior of the creditor bank is determined not only by the market situation at the time of the transaction, but also by the change in the state of the debtor during the loan period. With this in mind, the task of choosing the optimal market strategy becomes non-linear and can be solved using numerical methods of modeling the trading process.

Competitive strategies for original equipment manufacturers considering carbon cap and trade

This paper considers an original equipment manufacturer (OEM) faces competition from an independent remanufacturer (IR) and they both are regulated by carbon cap and trade policy (CTP). We develop models to explore the OEM’s optimal competitive strategy in the face of IR’s competition and environmental regulation. We first investigate the impact of CTP on the OEM and IR. Then, we analyze three competitive strategies that the OEM may choose: remanufacturing, fixed-fee licensing, and royalty licensing. We investigate their optimal decisions under each strategy and identify the conditions under which these strategies can coordinate the OEM and IR. Finally, we explore conditions under which one strategy is superior to another. The results show that the OEM is worse off when competing with the IR under CTP if the carbon cap allocated to the OEM is small. Fixed-fee licensing and royalty licensing can coordinate the OEM and IR not only from an economic perspective but also from an environmental perspective. The OEM’s optimal competitive strategy is determined by thresholds of three critical parameters: the fixed cost of setting up a remanufacturing system, the fixed-fee, and the per-unit royalty. We provide specific guidance on strategy selection for the OEM.

Вибір оптимальної конкурентної стратегії підприємства в умовах інтервальних оцінок критеріїв її результативності

Вибір оптимальної конкурентної стратегії підприємства в умовах інтервальних оцінок критеріїв її результативності

High-speed railway competition between China and Japan based on benefits

The main competitor China's high-speed rail faces in going global is Japan. China and Japan have different strengths and weaknesses in terms of technology, policy and capital in the field of high-speed rail. How to transfer their projects in Asia and Japan High-speed rail involved in the project won the right to construction, we need to develop China's railway optimal competitive strategy. From the perspective of game theory, this paper establishes the income functions of China, Japan and the project transferor countries, and discusses the changes of the return functions of the parties under different conditions and the competition strategies China should adopt. Finally, based on the outcome of the game and China's experience in the competition of overseas high-speed rail projects, we give corresponding policy recommendations.

Profiting from product-harm crises in competitive markets

Product-harm crises force managers to implement pricing strategies that optimally balance profitability with future potential costs of a recall. We propose a stochastic differential game to investigate what should be the optimal competitive pricing strategies in such contexts. In the proposed model, firms strategically choose prices taking into account that any player in the market can be forced to recall large volume of products at random dates. The characterization of the optimal pricing strategies yields novel managerial insights. We first find that prices of risk-prone products should be higher than prices of risk-free products due to the addition of state dependent risk-premia. Optimal pricing strategies differ depending on whether firms play Nash or Stackelberg. Furthermore, we find that despite its leadership position, the value function of the leader is lower than the value function of the follower. Finally, we discover that long term profits of competing firms can increase with intensities of the jump processes governing product harm crises. This surprising result happens because anticipating a product harm crisis softens price competition.

Spatial distribution of Agriophyllum squarrosum Moq. (Chenopodiaceae) in the straw checkerboards at a revegetated land of the Tengger Desert, northern China

The present study focuses on straw checkerboards established in the Shapotou Desert Research and Experimental Station at the southeastern edge of the Tengger Desert and their effects on the species richness and the abundance of Agriophyllum squarrosu Moq. Specifically, detailed analyses on the spatial distribution of A. squarrosum and the related soil properties were carried out at a small scale in the straw checkerboards. A. squarrosum is an excellent pioneer plant for revegetation in desert areas. However, the distribution pattern of A. squarrosum and the influencing factors have not been sufficiently delineated. The results showed that the species richness and the abundance of A. squarrosum were decreased exponentially from the border to the center of the straw checkerboards. At the micro-geomorphological scale, the soil texture, soil organic matter (SOM), soil nutrients (nitrogen, phosphorus and potassium), and soil infiltration rate in the topsoil tended to increase from the center to the border within a straw checkerboard, while soil moisture presented an opposite tendency. The soil seed bank of A. squarrosum, soil bulk density, electrical conductivity, sand content, CaCO3 accumulation, and pH showed no significant difference (P>0.05) between the border and the center of the straw checkerboards. Multiple linear regression analysis indicated that the abundance of A. squarrosum was mainly determined by the concentrations of SOM, nitrogen, and the infiltration rate, implying that nutrient acclimation was the optimal competitive strategy of A. squarrosum for surviving in a barren natural environment of an arid desert region.

Optimizing acquisition and retention spending to maximize market share

To determine spending on acquisition and retention of customers, a company can focus on maximizing a variety of indicators such as customer equity, profit or sales growth. In this article we use standard techniques from multivariable calculus to maximize market share through analysis of retention and switching ratios both in the absence and presence of a budget constraint. In the process, we identify firm theoretical foundations for some common intuitions, and give new insights on optimal competitive strategy. We include practical numerical examples that show marketing practitioners how to apply our analysis.

Effect of Market Orientation on Competitive Strategy to Integrated Agro Industry in Indonesia

Demand for agro-products tends to increase every year. However, agro-industry products in Indonesia does not have a good competitiveness. This is because of not optimal competitive strategy mapping indicated by unfavorable market orientation. Companies that have made the market orientation as the culture of the organization will focus on the external market needs, desires and market demand as a basis for preparing a strategy to compete for their respective business units within the organization and determine the success of the company. Competitive strategy should be designed to achieve continuous competitive advantage, enabling companies to dominate the market, old and new markets. Based on the above, the study aims to analyze the influence of market orientation in improving competitive strategy on Integrated Agro Industry in Indonesia.This research uses explanatory survey method, as it will explain the relationship between the variables studied. Collecting data in the study conducted by distributing questionnaires. While the method of data analysis used in this research is Structural Equation Modeling (SEM).Based on the survey results revealed that the market orientation of the positive and significant effect in improving the competitive strategy on Integrated Agro Industry in Indonesia. Meaning that the higher market orientation, the better competitive strategy applied by the company, so it will increase the competitiveness of industry which have an impact on better performance. Market orientation is an organizational culture that leads to the market. The starting point of a market orientation is market intelligence. Market orientation focused on understanding customer wants and needs of current and future.

When Violence Pays: A Cost-Benefit Analysis of Aggressive Behavior in Animals and Humans

An optimization analysis of human behavior from a comparative perspective can improve our understanding of the adaptiveness of human nature. Intra-specific competition for resources provides the main selective pressure for the evolution of violent aggression toward conspecifics, and variation in the fitness benefits and costs of aggression can account for inter-specific and inter-individual differences in aggressiveness. When aggression reflects competition for resources, its benefits vary in relation to the characteristics of the resources (their intrinsic value, abundance, spatial distribution, and controllability) while its costs vary in relation to the characteristics of organisms and how they fight (which, in turn, affects the extent to which aggression entails risk of physical injury or death, energetic depletion, exposure to predation, psychological and physiological stress, or damage to social relationships). Humans are a highly aggressive species in comparison to other animals, probably as a result of an unusually high benefit-to-cost ratio for intra-specific aggression. This conclusion is supported by frequent and widespread occurrence of male-male coalitionary killing and by male-female sexual coercion. Sex differences in violent aggression in humans and other species probably evolved by sexual selection and reflect different optimal competitive strategies for males and females.

Editorial for the Special Issue on: AGROSTAT 2010

During the last thirty years, several countries have seen to develop the agriculture in a form fast and substantial, with a significant contraction of the traditional systems of production and a marked differentiation of productive activities. The competition pushed towards the specialization and the technological development, particularly in the area of higher agricultural productivity. The development of agricultural sector increased the demand of technical-scientific knowledge leading to an agricultural statistic system that focused on issues relating to production and productivity. In this context, then, it is necessary that statisticians and industrial users have to meet, exchange experiences, keep in touch with the state-of-art of statistical methods in the food industry and evaluate their impact upon food quality and industrial competitiveness. AGROSTAT 2010 Conference ( February, 24-26, Benevento, Italy ) aimed at drawing an overview of the use of statistical methods in the food industry and at evaluating practical benefits given by new techniques. The conference focused strongly on applications. The aim was to highlight the power of statistical analysis as a decision tool and as help for defining locally optimal competitive industrial strategies. Due to the complexity of the agricultural statistic system, privileged conference themes were: Sensometrics, Chemometrics, Process Control and Risk Analysis. In this special issue much attention has been given to specific industrial problems as well as to highlight new statistical approaches in this methodological context. Several interesting researches have been then selected: the prediction of the product temperature at various positions in a vertical refrigerated display cabinet as well as the quantification of the influence of random parameters such as ambient temperature of supermarket and radiative conditions (Laguerre, Derens and Flick) ; a new method for the statistical analysis of suitable multi-block matrices (Bougeard, Qannari, Lupo and Chauvin ); a non parametric approach for the study of the controls in the production of agribusiness products (Alibrandi and Giacalone) ; the investigation of the consumer’s knowledge of specific quality of olive oil as well as the consumer preference and the perceived quality (Scarpato and Pagliuca) ; the proposal of using differential geometric LARS algorithm in order to study the expression profile of a sample of patients with latex-fruit syndrome (Augugliaro and Mineo) ; the use of genetic algorithm on mid-infrared spectrometric data to estimate fatty acid profile of goat milk (Ferrand, Huquet, Barbery, Barillet, Brochard, Larroque and Leray) ; a proposal to apply the global sensitivity analysis to food safety risk assessment (Augustin) ; the impact of chemical and sensorial characteristics on the market price of Italian red wines (Brentari and Zuccolotto) and the use of the Bipolar Mean in Sensory Analysis (Brentari, Dancelli and Maffenini) . A number of new ideas based on classical or new methods have been then put forward and tested. There will be applications or extensions of well known methodology which are not usually employed, as well as several papers propose new approaches. Going through the published articles you will find many intresting research ideas, it is evident that they encourage new directions for further researches. Marc Danzart ( Chairmen of Scientific Committee) Pietro Amenta ( Chairmen of Organizing Committee ) Luigi D'Ambra ( Chairmen of Organizing Committee ) Amjad D. Al-Nasser (Founding Editor of EJASA)Enrico Ciavolino ( Executive Managing Editor of EJASA)

Research of the competitive strategies of manufacturers and the optimal trade policy

This paper employs two-stage non-cooperative game model to probe into the formu1 lation of exporter's competitive strategy and government's optimal trade policy. The paper shows: When the exporters of two countries are in the face of Nash, Stackelberg mode and price, output to make strategies, it is solved that there will be 12 kinds of market equilibrium types. Among them the Stackelberg mode that regards the domestic manufacturers as leaders and the foreign manufacturers as price followers is the manufacturers' optimal competitive strategy. And now, it is an optimal trade policy for the country to levy a tax on the export commodities. But when the manufacturers adopt the output competition of Nash mode, then the optimal trade policy in domestic should be adjusted to export subsidies.