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 firms 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.

1. 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.

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