Dynamic Competition Theory

Dynamic Competition Theory focuses on how businesses compete and innovate over time, rather than just in a static market. It emphasizes that competition is about constantly improving products, services, and processes to meet changing consumer needs. Companies must adapt to new technologies, shifts in preferences, and actions of rivals. This ongoing dynamism drives economic growth and leads to better options for consumers. Unlike traditional views that see competition as a fixed battle, Dynamic Competition Theory highlights the importance of flexibility and innovation in maintaining a competitive edge.