What major question helps assess an industry's competitive dynamics?

The question "What moves are others likely to make?" is crucial in assessing an industry's competitive dynamics because it emphasizes the importance of anticipating competitive behavior in a strategic environment. Understanding potential strategic moves by competitors allows an organization to adapt its strategies proactively. It enables firms to prepare for shifts in market conditions, react to competitor actions, and identify opportunities for differentiation.

In competitive dynamics, players are constantly influenced by each other’s strategies, whether that involves pricing changes, product launches, marketing campaigns, or geographic expansion. By evaluating what competitors might do next, companies can create a more robust competitive strategy, which can lead to gaining or maintaining a competitive advantage.

While the other options provide useful insights, they do not directly relate to the competitive dynamics between firms as cohesively as the correct answer does. Historical sales patterns, for example, are valuable for understanding past performance but do not necessarily predict future competitive behavior. Similarly, while considering substitution options is important, it focuses more on the external threat landscape rather than internal competitive maneuvers. Customer loyalty provides insights into consumer behavior but is not a direct measure of competitive actions within the industry. Therefore, anticipating the moves of competitors is a foundational analysis for navigating and succeeding in a competitive landscape.