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Once a firm has completed the strategy formation process, it moves into the implementation stage. Often, this entails a series of competitive actions in order to establish, maintain, and increase market position. Factors that affect a firm's decision to initiate competitive actions include first-mover motivation, organizational size, and product quality. Conversely, firms may wish to initiate a competitive response based on their competitors' actions. These actions can be either strategic or tactical, and are often based on the size, stability, and financial position of competitors.
In a paper of no fewer than 1000 words, you must complete two tasks:
Explain the concept of competitive action, and provide details about each of the factors that would affect the likelihood of a firm initiating a competitive action.
Explain the process of initiating a competitive response. Differentiate between strategic and tactical responses, and explain what factors lead to a firm launching a competitive response.
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