GEORGE S. DAY, PhD, is a marketing professor at The Wharton School. He is widely recognized as the father of market-driven strategy.DAVID J. REIBSTEIN, PhD, is a marketing professor at The Wharton School. He is a leading scholar in the field of competitive marketing strategy.ROBERT E. GUNTHER was the coordinating writer for Wharton on Managing Emerging Technologies and Wharton on Dynamic Competitive Strategy.

WHARTON on DYNAMIC COMPETITIVE STRATEGY "A valuable contribution, this insightful book makes it clear that strategy is not a one-time search for a sustainable competitive advantage, but a continuous monitoring of the environment, consumers, and competitors with the object of making the right moves in a dynamically changing competitive landscape." -Philip Kotler S.C. Johnson and Sons Distinguished Professor of International Marketing J. L. Kellogg Graduate School of Management Northwestern University. "An ambitious and welcomed effort at addressing strategy from an interdisciplinary perspective." -Professor Don Lehmann Columbia University Graduate School of Business. "Wharton on Dynamic Competitive Strategy weaves together an unprecedented interdisciplinary analysis of competitive strategies that any global manager should consider indispensable reading...An impressive book." -Jon M. Huntsman, Sr. Chairman and CEO Huntsman Corporation. "Provocative and meaningful ... Provides an excellent framework for formulating strategy." -Sam Morasca Vice President, Marketing Shell Oil Products Company. "A Rosetta stone for strategy. Read it and keep it by your side!" -Dale Moss Executive Vice President, Sales and Marketing USA British Airways, New York

• Introduction: The Dynamic Challenges for Theory and Practice 1 PART I: UNDERSTANDING ADVANTAGES IN A CHANGING COMPETITIVE ENVIRONMENT 19Chapter 1. Assessing Competitive Arenas: Who Are Your Competitors? 23George S. DayChapter 2. Maintaining Competitive Edge: Creating and Sustaining Advantages in Dynamic Competitive Environments 48George S. DayChapter 3. Integrating Policy Trends into Dynamic Advantage 76Elizabeth E. BaileyChapter 4. Technology-Driven Environmental Shifts and the Sustainable Competitive Disadvantage of Previously Dominant Companies 99Eric K. ClemonsPART II: ANTICIPATING COMPETITORS' ACTIONS 123Chapter 5. Game Theory and Competitive Strategy 127Teck Hua Ho and Keith WeigeltChapter 6. Behavioral Theory and Naïve Strategic Reasoning 151Robert J. Meyer and Darryl BanksChapter 7. Coevolution: Toward a Third Frame for Analyzing Competitive Decision Making 177Eric J. Johnson and J. Edward RussoChapter 8. Anticipating Reactions: Factors That Shape Competitor Responses 198S. Venkataraman, Ming-Jer Chen, and Ian C. MacMillanChapter 9. Understanding Competitive Relationships 220Jagmohan S. Raju and Abhik RoyPART III: FORMULATING DYNAMIC COMPETITIVE STRATEGIES 233Chapter 10. Creative Strategies for Responding to Competitive Actions 237Hubert Gatignon and David ReibsteinChapter 11. Preemptive Strategies 256Jerry WindChapter 12. Signaling to Competitors 277Oliver P. Heil, George S. Day, and David J. ReibsteinChapter 13. Commitment: How Narrowing Options Can Improve Competitive Positions 293Louis A. ThomasChapter 14. Antitrust Constraints to Competitive Strategy 313Dennis A. YaoPART IV: CHOOSING AMONG ALTERNATIVE COMPETITIVE STRATEGIES 339Chapter 15. Using Conjoint Analysis to View Competitive Interaction through the Customer's Eyes 343Paul E. Green and Abba M. KriegerChapter 16. The Competitive Dynamics of Capabilities: Developing Strategic Assets for Multiple Futures 368Paul J. H. Schoemaker and Raphael AmitChapter 17. Putting the Lesson Before the Test: Using Simulation to Analyze and Develop Competitive Strategies 395David J. Reibstein and Mark J. ChussilNotes 424Index 451

GEORGE S. DAY, PhD, is a marketing professor at The Wharton School. He is widely recognized as the father of market-driven strategy.DAVID J. REIBSTEIN, PhD, is a marketing professor at The Wharton School. He is a leading scholar in the field of competitive marketing strategy.ROBERT E. GUNTHER was the coordinating writer for Wharton on Managing Emerging Technologies and Wharton on Dynamic Competitive Strategy.

WHARTON on DYNAMIC COMPETITIVE STRATEGY "A valuable contribution, this insightful book makes it clear that strategy is not a one-time search for a sustainable competitive advantage, but a continuous monitoring of the environment, consumers, and competitors with the object of making the right moves in a dynamically changing competitive landscape." -Philip Kotler S.C. Johnson and Sons Distinguished Professor of International Marketing J. L. Kellogg Graduate School of Management Northwestern University. "An ambitious and welcomed effort at addressing strategy from an interdisciplinary perspective." -Professor Don Lehmann Columbia University Graduate School of Business. "Wharton on Dynamic Competitive Strategy weaves together an unprecedented interdisciplinary analysis of competitive strategies that any global manager should consider indispensable reading...An impressive book." -Jon M. Huntsman, Sr. Chairman and CEO Huntsman Corporation. "Provocative and meaningful ... Provides an excellent framework for formulating strategy." -Sam Morasca Vice President, Marketing Shell Oil Products Company. "A Rosetta stone for strategy. Read it and keep it by your side!" -Dale Moss Executive Vice President, Sales and Marketing USA British Airways, New York

• Introduction: The Dynamic Challenges for Theory and Practice 1 PART I: UNDERSTANDING ADVANTAGES IN A CHANGING COMPETITIVE ENVIRONMENT 19Chapter 1. Assessing Competitive Arenas: Who Are Your Competitors? 23George S. DayChapter 2. Maintaining Competitive Edge: Creating and Sustaining Advantages in Dynamic Competitive Environments 48George S. DayChapter 3. Integrating Policy Trends into Dynamic Advantage 76Elizabeth E. BaileyChapter 4. Technology-Driven Environmental Shifts and the Sustainable Competitive Disadvantage of Previously Dominant Companies 99Eric K. ClemonsPART II: ANTICIPATING COMPETITORS' ACTIONS 123Chapter 5. Game Theory and Competitive Strategy 127Teck Hua Ho and Keith WeigeltChapter 6. Behavioral Theory and Naïve Strategic Reasoning 151Robert J. Meyer and Darryl BanksChapter 7. Coevolution: Toward a Third Frame for Analyzing Competitive Decision Making 177Eric J. Johnson and J. Edward RussoChapter 8. Anticipating Reactions: Factors That Shape Competitor Responses 198S. Venkataraman, Ming-Jer Chen, and Ian C. MacMillanChapter 9. Understanding Competitive Relationships 220Jagmohan S. Raju and Abhik RoyPART III: FORMULATING DYNAMIC COMPETITIVE STRATEGIES 233Chapter 10. Creative Strategies for Responding to Competitive Actions 237Hubert Gatignon and David ReibsteinChapter 11. Preemptive Strategies 256Jerry WindChapter 12. Signaling to Competitors 277Oliver P. Heil, George S. Day, and David J. ReibsteinChapter 13. Commitment: How Narrowing Options Can Improve Competitive Positions 293Louis A. ThomasChapter 14. Antitrust Constraints to Competitive Strategy 313Dennis A. YaoPART IV: CHOOSING AMONG ALTERNATIVE COMPETITIVE STRATEGIES 339Chapter 15. Using Conjoint Analysis to View Competitive Interaction through the Customer's Eyes 343Paul E. Green and Abba M. KriegerChapter 16. The Competitive Dynamics of Capabilities: Developing Strategic Assets for Multiple Futures 368Paul J. H. Schoemaker and Raphael AmitChapter 17. Putting the Lesson Before the Test: Using Simulation to Analyze and Develop Competitive Strategies 395David J. Reibstein and Mark J. ChussilNotes 424Index 451

GEORGE S. DAY, PhD, is a marketing professor at The Wharton School. He is widely recognized as the father of market-driven strategy.DAVID J. REIBSTEIN, PhD, is a marketing professor at The Wharton School. He is a leading scholar in the field of competitive marketing strategy.ROBERT E. GUNTHER was the coordinating writer for Wharton on Managing Emerging Technologies and Wharton on Dynamic Competitive Strategy.

WHARTON on DYNAMIC COMPETITIVE STRATEGY "A valuable contribution, this insightful book makes it clear that strategy is not a one-time search for a sustainable competitive advantage, but a continuous monitoring of the environment, consumers, and competitors with the object of making the right moves in a dynamically changing competitive landscape." -Philip Kotler S.C. Johnson and Sons Distinguished Professor of International Marketing J. L. Kellogg Graduate School of Management Northwestern University. "An ambitious and welcomed effort at addressing strategy from an interdisciplinary perspective." -Professor Don Lehmann Columbia University Graduate School of Business. "Wharton on Dynamic Competitive Strategy weaves together an unprecedented interdisciplinary analysis of competitive strategies that any global manager should consider indispensable reading...An impressive book." -Jon M. Huntsman, Sr. Chairman and CEO Huntsman Corporation. "Provocative and meaningful ... Provides an excellent framework for formulating strategy." -Sam Morasca Vice President, Marketing Shell Oil Products Company. "A Rosetta stone for strategy. Read it and keep it by your side!" -Dale Moss Executive Vice President, Sales and Marketing USA British Airways, New York

• Introduction: The Dynamic Challenges for Theory and Practice 1 PART I: UNDERSTANDING ADVANTAGES IN A CHANGING COMPETITIVE ENVIRONMENT 19Chapter 1. Assessing Competitive Arenas: Who Are Your Competitors? 23George S. DayChapter 2. Maintaining Competitive Edge: Creating and Sustaining Advantages in Dynamic Competitive Environments 48George S. DayChapter 3. Integrating Policy Trends into Dynamic Advantage 76Elizabeth E. BaileyChapter 4. Technology-Driven Environmental Shifts and the Sustainable Competitive Disadvantage of Previously Dominant Companies 99Eric K. ClemonsPART II: ANTICIPATING COMPETITORS' ACTIONS 123Chapter 5. Game Theory and Competitive Strategy 127Teck Hua Ho and Keith WeigeltChapter 6. Behavioral Theory and Naïve Strategic Reasoning 151Robert J. Meyer and Darryl BanksChapter 7. Coevolution: Toward a Third Frame for Analyzing Competitive Decision Making 177Eric J. Johnson and J. Edward RussoChapter 8. Anticipating Reactions: Factors That Shape Competitor Responses 198S. Venkataraman, Ming-Jer Chen, and Ian C. MacMillanChapter 9. Understanding Competitive Relationships 220Jagmohan S. Raju and Abhik RoyPART III: FORMULATING DYNAMIC COMPETITIVE STRATEGIES 233Chapter 10. Creative Strategies for Responding to Competitive Actions 237Hubert Gatignon and David ReibsteinChapter 11. Preemptive Strategies 256Jerry WindChapter 12. Signaling to Competitors 277Oliver P. Heil, George S. Day, and David J. ReibsteinChapter 13. Commitment: How Narrowing Options Can Improve Competitive Positions 293Louis A. ThomasChapter 14. Antitrust Constraints to Competitive Strategy 313Dennis A. YaoPART IV: CHOOSING AMONG ALTERNATIVE COMPETITIVE STRATEGIES 339Chapter 15. Using Conjoint Analysis to View Competitive Interaction through the Customer's Eyes 343Paul E. Green and Abba M. KriegerChapter 16. The Competitive Dynamics of Capabilities: Developing Strategic Assets for Multiple Futures 368Paul J. H. Schoemaker and Raphael AmitChapter 17. Putting the Lesson Before the Test: Using Simulation to Analyze and Develop Competitive Strategies 395David J. Reibstein and Mark J. ChussilNotes 424Index 451