Single competitive markets in retail financial services

Abstract

The concept of the single competitive market has been introduced in the marketing and strategy literature as the most complete and appropriate unit of analysis for the study of competitive strategy. It captures the notion that competition takes place amongst companies’ offerings rather than the companies themselves, and that through the marketplace, customers are the final arbiters of success. A competitive advantage can only exist in relation to the market and the other offerings in that market. This paper explores the extent to which the concept of the single competitive market has been recognized and operationalized by senior marketing and strategy practitioners in the retail financial services sector. It explores hypotheses concerned with possible influences on the extent of adoption, and concludes that managers who are involved in the marketing of a large number of service offerings that, potentially, customers perceive as complex are more likely to employ the notion of the single competitive market when mapping their competitive environment.