BALBALLEGO, AIZA L.

MBA – II
SEMINAR IN MANAGEMENT

MODULE 7: Competition

1. Between ‘paralysis by analysis’ and ‘extinction by instinct’

 Analysis Paralysis is when an organization or a team or a person is unable to make a
decision and progress thereby entering into a state of paralysis. This could be either
due to a flood of information or due to the tendency to overthink or over analyze in
order to get the perfect outcome
 Extinct by Instinct is when an organization or a team or a person makes an incorrect
decision in haste without detailed or with little analysis. Such decisions are often
detrimental for the organization
2. Clusters and the New Economics of Competition
 Today's economic map of the world is dominated by what are called clusters: critical
masses - in one place - of unusual competitive success in particular fields. Clusters are
not unique, however; they are highly typical - and therein lies a paradox: the enduring
competitive advantages in a global economy lie increasingly in local things -
knowledge, relationships, motivation - that distant rivals cannot match. Untangling the
paradox of location in a global economy reveals a number of key insights about how
companies continually create competitive.
 Clusters affect competitiveness within countries as well as across national borders.
Therefore, they lead to new agendas for all business executives not just those who
compete globally. More broadly, clusters represent a new way of thinking about
location, challenging much of the conventional wisdom about how companies should
be configured, how institutions such as universities can contribute to competitive
success, and how governments can promote economic development and prosperity.
 Clusters are geographic concentrations of interconnected companies and institutions in
a particular field. Clusters encompass an array of linked industries and other entities
important to competition. They include, for example, suppliers of specialized inputs
such as components, machinery, and services, and providers of specialized
infrastructure. Clusters also often extend downstream to channels and customers and
laterally to manufacturers of complementary products and to companies in industries
related by skills, technologies, or common inputs. Finally, many clusters include
governmental and other institutions - such as universities, standards-setting agencies,
think tanks, vocational training providers, and trade associations - that provide
specialized training, education, information, research, and technical support. The
California wine cluster is a good example.

3.  Blind Spots in Competitive Analysis

 Blind spots are the "areas where a competitor will either not see the significance of
events at all, will perceive them incorrectly, or will perceive them very slowly.
 "These blind spots can slow a company's response to its competitors' moves or even
cause the selection of the wrong competitive approach.
 Competitive analysis is the cornerstone of effective strategy formulation and
implementation. This analysis helps executives understand and predict strategic
moves by competitors. It also allows executives to develop, select, and test
appropriate strategies. However, competitive analysis is complicated and time-
consuming, and it requires significant organizational resources, creativity,
imagination, and insight. This complexity often breeds flawed analysis. Undetected,
such analysis leads to ineffective, if not disastrous, strategies.

REFERENCES:
o https://www.benchmarksixsigma.com/forum/topic/36041-analysis-paralysis-vs-extinct-by-
instinct/
o https://www.bartleby.com/essay/Clusters-and-the-New-Economics-of-Competition-
F3TX5SSXHKU4Y
o https://www.jstor.org/stable/4165119?seq=1