Why Copying the Same Competitor Produces Different Strategies

Overview

Managers often face the challenge of deciding which aspects of a competitor’s strategy to imitate, and how to adapt those strategies to their own firm’s unique context. However, firms imitating the same competitor’s strategy in the same environment often end up replicating different components of that strategy. This divergence can lead to confusion and inefficiency, as managers struggle to understand why their imitation efforts are not yielding the desired results.

The problem of strategic divergence is particularly acute in high-stakes environments, where the consequences of mistaken imitation can be severe. In such contexts, managers need to carefully consider the internal interdependencies that underlie their firm’s strategy, and how these interdependencies might affect the success of their imitation efforts. By understanding these interdependencies, managers can make more informed decisions about which aspects of a competitor’s strategy to imitate, and how to adapt those strategies to their own firm’s unique needs.

What This Research Is About

This study investigates the phenomenon of strategic divergence, and explores the reasons why firms imitating the same competitor’s strategy often end up replicating different components of that strategy. The authors argue that such divergence can arise because firms vary in the internal interdependencies that underlie their strategies. When a firm significantly differs from a competitor in how one component of its strategy interacts with other components, the consequences of replicating the competitor’s choices about that component are harder to anticipate, making imitation less likely.

The study is set in the context of esports, where small teams of professional video-game players compete in high-stakes tournaments. This context provides a unique opportunity to observe both strategic choices and coordination mechanisms, allowing the authors to test their hypotheses about the role of internal interdependencies in shaping imitation efforts. By examining the strategies and coordination mechanisms of esports teams, the authors aim to shed light on the complex processes that underlie strategic imitation, and to provide insights that can inform managerial decision-making in a wide range of contexts.

What the Study Found

The study found that internal interdependencies play a crucial role in shaping the success of imitation efforts. When a firm’s internal coordination mechanisms are strong, it is better able to anticipate the consequences of replicating a competitor’s strategy, and to adapt that strategy to its own unique needs.

• The study found that firms with strong internal coordination mechanisms are more likely to successfully imitate a competitor’s strategy, because they are better able to anticipate the consequences of replication. This suggests that managers should invest in building strong internal coordination mechanisms, such as communication and shared experience among decision-makers, in order to support their imitation efforts.
• The study also found that firms that differ significantly from their competitors in terms of internal interdependencies are less likely to imitate their competitors’ strategies. This suggests that managers should carefully consider the internal interdependencies that underlie their firm’s strategy, and how these interdependencies might affect the success of their imitation efforts.
• Finally, the study found that strong communication or shared experience among decision-makers can help mitigate barriers to imitation arising from interdependence asymmetries. This suggests that managers should prioritize building strong relationships among their decision-making team, in order to support their imitation efforts and drive strategic success.

What It Means in Practice

The study’s findings have important implications for managers who are seeking to imitate their competitors’ strategies. By understanding the internal interdependencies that underlie their firm’s strategy, and how these interdependencies might affect the success of their imitation efforts, managers can make more informed decisions about which aspects of a competitor’s strategy to imitate, and how to adapt those strategies to their own firm’s unique needs.

• Managers should carefully consider the internal interdependencies that underlie their firm’s strategy, and how these interdependencies might affect the success of their imitation efforts. This requires a deep understanding of the firm’s internal coordination mechanisms, and how these mechanisms can be leveraged to support imitation efforts.
• Managers should invest in building strong internal coordination mechanisms, such as communication and shared experience among decision-makers, in order to support their imitation efforts. This can involve implementing new communication protocols, providing training and development opportunities for decision-makers, and fostering a culture of collaboration and teamwork.
• Managers should prioritize building strong relationships among their decision-making team, in order to support their imitation efforts and drive strategic success. This can involve encouraging open communication, fostering a sense of trust and respect among team members, and providing opportunities for team members to share their knowledge and expertise.

Questions Managers Should Ask

• What are the internal interdependencies that underlie our firm’s strategy, and how might these interdependencies affect the success of our imitation efforts?
• How can we build strong internal coordination mechanisms to support our imitation efforts, and what role can communication and shared experience among decision-makers play in this process?
• What are the potential risks and challenges associated with imitating a competitor’s strategy, and how can we mitigate these risks through careful planning and execution?

Limits and Responsible Interpretation

The study’s findings should be interpreted in the context of the esports industry, and may not be generalizable to other contexts. Additionally, the study’s results do not establish a causal relationship between internal interdependencies and the success of imitation efforts, but rather suggest a correlation between these variables.

Why This Matters for Scholars

The study contributes to our understanding of the complex processes that underlie strategic imitation, and highlights the importance of internal interdependencies in shaping the success of imitation efforts. The study’s findings have implications for scholars of strategic management, and suggest new avenues for research on the topic of competitor analysis and strategic imitation.

Final Takeaway

The study’s central lesson is that managers should carefully consider the internal interdependencies that underlie their firm’s strategy, and how these interdependencies might affect the success of their imitation efforts. By understanding these interdependencies, and by building strong internal coordination mechanisms to support their imitation efforts, managers can make more informed decisions about which aspects of a competitor’s strategy to imitate, and how to adapt those strategies to their own firm’s unique needs. This requires a deep understanding of the firm’s internal dynamics, as well as a willingness to invest in building strong relationships among decision-makers and to prioritize careful planning and execution.