For some, charter schools represent the hope of improved student learning and performance. It is hoped to understand the theory of change underlying charter schools relative to the actual evidence on their impact. In order to address this issue, the authors examine the logic of organizational change and competitive options, drawing on evidence about the competitive effects of charter schools. First, this paper explores external factors that may induce or mitigate the pressure of a public school district to respond to competition from charter schools; these factors include the market share of charter schools, the degree of loss to these competing schools, the size of the student population, or the quality of the competing schools. Analyzing existing research that identifies these factors and how they relate to the response of the public school district demonstrates how and if external pressures mitigate or induce a competitive response from the traditional school district. Next, the authors focus on how internal factors relate to the ways in which a public school district might respond to competitive pressure. Such factors include the knowledge, attitude, and beliefs of the district leadership and the organizational behavior of the public school district.