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This article bridges two important subjects in strategy: competitor analysis and interfirm rivalry. Through a refined conceptualization of competitor analysis, the article introduces two firm-pecific, theorybased constructs: market commonality, developed from the literature on multiple-point competition, and resource similarity. derived from the resource-based theory of the firm. The joint consideration of these two constructs shows the complementarity of these two prominent but contrasting strategy theories. Each firm has a unique market profile and strategic resource endowment, and a pair-wise comparison with a given competitor along these two dimensions will help to illuminate the prebattle competitive tension between these two firms and to predict how a focal firm may interact with each of its competitors. The idea of competitive asymmetry is introduced. that is. the notion that a given pair of firms may not pose an equal degree of threat to each other. To illustrate competitor mapping, measures of these two constructs are proposed, and an example is offered. The article ends with a number of implications for research and practice.
The study of competitor analysis (Hamel & Prahalad, 1990; Porac & Thomas, 1990; Porter, 1980, 1985; Zajac & Bazerman, 1991) and of interfirm rivalry (Bettis & Weeks, 1987; D'Aveni, 1994; MacMillan, McCaffery, & Van Wijk, 1985; Smith, Grimm, & Gannon, 1992) occupies a central position in strategy. Therefore, a basic understanding of each subject, as well as an integrated comprehension of both, is of paramount importance.
A primary objective of competitor analysis is to understand and predict the rivalry, or interactive market behavior, between firms in their
This article is dedicated to William H. Newman, a mentor and an exemplar of scholarship. The author would like to thank Eric Abrahamson, Laura M. Brown, Jane Dutton, Javier Gimeno, Anil K. Gupta, Donald C. Hambrick, Kathryn R. Harrigan, Donald R. Lehmann, John Michel, Danny Miller, Ia C. MacMillan, Paul Schoemaker, and Kuo-Hsien Su for their helpful comments on a earlier draft of this article. The author would also like to acknowledge the insightful comments of the Editor and the reviewers. The completion of this article was supported partially by the Management Institute at the Columbia Business School and by a Crosby-Foggitt Fellowship from the Snider Entrepreneurial Center of the Wharton School. Kuo-Hsien Su and Jaeik Oh helped...