What strategic moves are rivals likely to make next? (See Chapter 3, page 102-104). Using each of the categories in the chart on page 104, forecast what competitors in this industry would likely do next. (20 points)
Rivals come in all sizes in the CPA industry. While the market is dominated by the Big Four there is still room for smaller firms and even new entries to differentiate themselves and find a niche or other differentiation. Analyzing the profiling objectives and strategies of the competitors needs to be segmented into the size and goal of each general size firm as well as their competitive scope. For this question we will focus on the competitive scope of local rivalry. The company composition will be firms with a desire to build/maintain …show more content…
By forming new partnerships or acquiring existing firms, the market share will be increased. Through acquisition, some of the stigma associated with a recent entry can be mollified if the combining is with a more established firm which may lend the appearance of stability that comes with a well-known name. However, caution should be taken, as part of the appeal of clients choosing a local firm over the Big Four is their ability to provide personal, excellent and warm customer service. This appeal could suffer if the firm grows too fast and too large, which could lose customers and put them directly in competition with the Big Four. For a relatively recent entrant this direct competition could prove disastrous.
Looking forward rivals will want to change our competitive position from the weaker new entry position to a stronger position. To achieve this will require a mostly balanced strategic posture, with a slight increase of offensive tactics over defensive. As local rival firms try to achieve differentiation as their competitive strategy they will emphasize their geographic market niche through visible community support to show they are a “home-town”
Rivals come in all sizes in the CPA industry. While the market is dominated by the Big Four there is still room for smaller firms and even new entries to differentiate themselves and find a niche or other differentiation. Analyzing the profiling objectives and strategies of the competitors needs to be segmented into the size and goal of each general size firm as well as their competitive scope. For this question we will focus on the competitive scope of local rivalry. The company composition will be firms with a desire to build/maintain …show more content…
By forming new partnerships or acquiring existing firms, the market share will be increased. Through acquisition, some of the stigma associated with a recent entry can be mollified if the combining is with a more established firm which may lend the appearance of stability that comes with a well-known name. However, caution should be taken, as part of the appeal of clients choosing a local firm over the Big Four is their ability to provide personal, excellent and warm customer service. This appeal could suffer if the firm grows too fast and too large, which could lose customers and put them directly in competition with the Big Four. For a relatively recent entrant this direct competition could prove disastrous.
Looking forward rivals will want to change our competitive position from the weaker new entry position to a stronger position. To achieve this will require a mostly balanced strategic posture, with a slight increase of offensive tactics over defensive. As local rival firms try to achieve differentiation as their competitive strategy they will emphasize their geographic market niche through visible community support to show they are a “home-town”