Competitiveness - a Behavioral Phenomenon
Basically it’s a behavioral phenomenon, and great products and profitability are merely symptoms of those behaviors.
Needs to Take Account of Mixed Rationality
Competitive strategy must also be based on an analysis of cognitive biases, the behavioral drivers that are mostly unconscious and usually result in adverse or sub-optimum business outcomes.
Linking Behaviors with Financial Outcomes
This new behavioral model reveals the key behavioral drivers of competitiveness and shows how these can be linked formally to business and valuation outcomes.
To Measure Market Outcomes
The analysis must be measurable, to reveal the incidence of the drivers of competitive behaviors as a way of providing a quantitative basis for competitive achievement and expectations.
Allowing Prediction of a Company’s Market Positioning
In this section we provide a real example of prediction of competitive outcomes based on behavioral data.