A study on the influence of the competitive environment on the corporate strategic behavior

Abstract

Strategic behavior of companies in the industry is composed of two parts, homogenization and differentiation. Strategic behavior of the company builds the competitive environment of the industry especially. Although at the present time the simulation is still in an early concept stage, the authors created it by Multi-Agent System Simulation (MASS). The basic concept of the homogeneous behavior simulations is reported in order to obtain feedback from a variety of perspectives. In this thesis the attempt of the MASS suggests that how to mix homogeneous behavior and differentiation behavior for the competitor’s strategic behavior in the industry. In addition, the experiment confirmed the models influence on the competitive environment of an industry that is generated by differences of strategic behaviors. The experiment shows that a slight difference in strategic behavior of companies leads to a large difference in the competitive environment of the industry. Then, homogeneous behaviors in differentiation behavior also strengthen the homogeneous competitive environment of industry.