The Difference between Proactiveness and Competitive Aggressiveness in Terms of Achieving and Sustaining Competitive Advantage
Proactiveness
Proactive organizations monitor trends and focus on recognizing the needs of current customers, and forecasting changes in the market demands or problems that can lead to the new venture possibilities. (Proactiveness involves not only anticipating changes but also being willing to act on those conceptions in a competition.)
Applies to the efforts of the firm to take advantage of modern opportunities.
A perspective and progressive characteristic of a marketplace leader that seizes opportunities in anticipation of the future demands.
In the industry The First Mover Advantage is the benefit gained by firm that was the first to enter the market, create a unique brand, implement administrative methods, or grasp new operating technologies. Lack of competition allows firms to grab high profit. Retain established brand image serves the reputation earned by being first. However, first movers are not generally successful, because costumers may be disinclined to accept new ways of doing things.
Competitive aggressiveness
Directed toward competitors.
Applies to the efforts of the firm to outperform its rivals
An intense effort to outperform industry rivals characterized by an aggressive response aimed at improving position or overcoming a threat in a competitive marketplace.
Competitive advantages may not always be gained by competitive aggressiveness. It is the strategy that is used the best in moderation. Aggressively established positions and decidedly exploited opportunities to attain profitability promote companies to maintain their competitive advantages if their goal is to defeat their competitors. The difference between Proactiveness and Competitive Aggressiveness is that the first is focused on company’s products rivalry where the second is directed to the rivalry between companies itself.
Reference
Dess, G., Lumpkin, G., Eiser, A., & McNamara, G. (2016). Strategic Management: Text and Cases (7th ed., pp. 401-403). McGraw-Hill Learning Solutions. Retrieved from …
