Competitor Identification for Sustainable Survival Strategies: Illustration with Supply Chain Versus Supply Chain Competition

Abstract

We describe a methodology for identifying competitors from first principles, drawing on the ecological niche theory which stipulates that competition arises from the dependence of interacting entities on the same limiting resources or, in ecological terms, from overlap in their niches. Depending on the context, the entities of interest may be species, products, firms, countries, or supply chains. We discuss the concepts of niche breadth and niche overlap and provide a mathematical expression for computing the competitive effects of interacting entities on one another from niche breadth and overlap measures. We illustrate the competitor identification procedure with simulated data mimicking a situation where supply chains compete over logistics modes on which they rely for moving goods from point to point. Competition identification is invaluable to business sustainability as it allows the entities involved to remain sustainable and persist in a competitive environment by crafting effective strategies that allow them to continuously adapt to changes and mitigate the negative impacts of competition.