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Competitive strategy (Micro)


Battles of Standards (5/9/2006)

Winners in the battle among proprietary standards can keep out competitors and lock in existing customers

Keywords: Apple, Betamax, Blu-ray DVD, HD DVD, IBM, Microsoft, open standards, proprietary standards, VHS

Beating the Pirates to the Punch Bowl (1/16/2006)

The low marginal cost of reproducing DVD movies has made it difficult to stamp out the bootleg DVD business in China.

Keywords: bootleg, DVD, Electronic, online games, pay-per-view, piracy, Sisterhood of the Traveling Pants, Warner Bros

Bottom Fishing (3/7/2002)

Recession and bear stock market provide an environment for the fittest firms to expand and consolidate at the expense of weaker competitors.

Keywords: advertising, bargain hunter, bottom fishing, Dell, goodwill, hostile takeover, merger and acquisitions, overcapacity

Cleaning Up the Detergent Market (1/25/2012)

A cartel in detergents broke up over defections from agreed prices and promotion practices.

Keywords: antitrust, cartel, commodity, detergent, oligopoly, price collusion, price fixing, prisoner's dilemma, promotion

Competitive Strategy (7/7/2006)

Static efficiency in mature products may be good for consumers in the short run, but dynamic efficiency in innovative products is what drives the economy and elevates consumer welfare in the long run.

Keywords: brand dominance, consumer surplus, dynamic efficiency, economic surplus, innovative products, lock-in effect, market structure, mature products, monopoly, network product, oligopoly, patents, perfect competition, price discrimination, single pricing, standards, static efficiency

Dead Men Flying (3/7/2007)

Funeral directors might be more concerned about getting the most perks offered by airline loyalty programs than the lowest fares for shipping dead bodies.

Keywords: air miles, cargo, corpse, dead bodies, Florida, frequent dier program, funeral director, inelastic demand, Jet Blue, JetBlue, loyalty program, perks, shipment

Death of the Music Middleman (3/7/2007)

The middleman role of music labels to produce, distribute, and promote albums has been compromised by the Internet to the benefit of the artists and consumers.

Keywords: artists, bands, CD, clap your hands, direct marketing, distribution, download, loss leader, middleman, middlemen, music label, Target

Disruptive Technology (9/28/1999)

Dominant companies' preoccupation with pleasing high-end customers for higher profit margin inadvertently creates niches at the low-end of the market for start-ups to invade.

Keywords: disruptive technology, innovations, Kmart, market entry, market niche, profit margin, Sears, Sony, sustaining technology, Wal-Mart

Extreme Image Makeover (6/22/2006)

The successful emergence of once-slighted digital cameras has reshuffled the cast of major players in the photography business.

Keywords: competition, complementary goods, digital cameras, disruptive technology, film cameras, flash memory, Fuji, Kodak, Konica Minolta, photography, product category, product differentiation, Sony

From Brands to Generics - No Monopoly, No Competition (7/31/2002)

By providing incentives for brand-name drug companies to fund expensive R&D, temporary patents for expensive blockbuster drugs inadvertently lead to cheaper generic rivals when the patents expire.

Keywords: bioequivalent, brand-name drugs, competition, Generic drugs, Hatch-Waxman Act, monopoly, patent, prescription drugs

Genericization as a Market Maker (1/14/2006)

The creation of a new market typically involves the simultaneous development of interlocking parts. Sacrificing the short-term gain for at least one part is often necessary to overcome initial supplier or buyer inertia.

Keywords: Apple, critical mass, Dell, genericization, IBM, Mac, Microsoft, open system, PC, proprietary system, standardized parts, two-sided market

Is Imitation a Flattery or a Ripoff? (1/10/2007)

High-end-orientated garment fashion designers leave a lot of money on the table for the knockoff competitors.

Keywords: Armani, copyright, fashion, flattery, high-end market, imitation, knockoff, Kohl's, mass market, piracy, Prada, price discrimination, ripoff, Vera Wang

Loss-leader Economy (1/10/2007)

Loss leaders might conceal punishing fee traps for the unwary myopic consumers.

Keywords: Gabaix, hidden fees, Laibson, late fee, loss leaders, myopic consumers, overage charges, price discount, sophisticated consumers, transparent pricers, traps

May the Best Brand Win! (11/9/2001)

Because well-known brands can signal quality and integrity amid consumer ignorance, brands could stabilize market share and enhance brand-owners' ability to charge premium prices.

Keywords: advertising, brands, dot-coms, market signaling, reputation, Starbucks

McDonald Toys Inc. (6/22/2006)

McDonald depends on free toys to drum up sales of mature Happy Meals.

Keywords: advertising, competition, McDonald, profit margin, scale economy, Teenie Beanie, tie-in promotion, toys

Niche Competition (9/7/2005)

Mass customization using e-commerce and digital production technology has brought uniquely different products to suit individual tastes and a new component (niche competition) to the conventional textbook market structure.

Keywords: market structure, mass customization, monopolistic competition, niche competition, niche products, oligopolistic competition, unique products

Power Play (7/31/2002)

Market competition requires a balance of power between buyers and sellers.

Keywords: balance of power, brand-name drugs, Generic drugs, Hatch-Waxman Act, HMO, managed care, patent, prescription drugs, Prozac

Protest-free Drug Testing (2/27/2007)

China's low labor cost, abundant test animals, tax incentives, and permissive research environment have contributed to its comparative advantage in drug development.

Keywords: animal testing, animal-rights activists, Beijing, Bridge, China, drug testing, moral qualms, morality, orphan drug, protest, stem cell research, Zhongguancun

Shadow Branding (6/22/2006)

Store brands gain competitive advantage by free-riding on name brands’ brand recognition and R & D.

Keywords: counterfeiting, house brands, name brands, oligopolistic competition, private labels, product differentiation, shadow branding, store brands, Wal-Mart, Walgreens

Streaming Revenues (6/22/2006)

Many companies earn more revenues from selling replacement parts than selling the complementary products.

Keywords: complementary goods, Dell, Hewlett-Packard, IBM, ink cartridges, printer, profit, razor, razor blades, replacement parts, third-party supplier

Survival of the Fittest (3/7/2002)

In the PC business, low profit and generic products are compatible with market domination.

Keywords: commodity, Dell, direct marketer, direct sales, generic products, inventory, market share, PC, product innovation, profit margin, R&D, survival of the fittest

Systems Competition and Network Effects (9/26/2000)

A dominant network based on a near universal standard can internalize a great deal of system externality to the benefits of network users and can persist even in the face of technically superior competing networks.

Keywords: compatibility, complementary products, coordination, expectation, network externality, system

The Brand Game (9/11/2007)

Chinese companies try to move up the value chain by buying established brands.

Keywords: brand, Dirt Devil, IBM, prestige, profit, Revlon, Singer, value chain

The Rise of Chicken (9/7/2005)

By vertically integrating the chicken business and applying quality control and standardization to all the steps from production to marketing, Tyson Foods has brought better and cheaper chicken to consumers, higher wages to workers and fatter returns to shareholders in a once low-profit commodity business.

Keywords: brands, chicken, mechanization, profit margin, standardization, technology, Tyson Foods, vertical integration, wages

The Snowball Effect (11/9/2001)

Knowledge-based industries subject to increasing returns because of high R&D fixed costs and low variable costs naturally tend to monopolize the market.

Keywords: Adam Smith, avalanche, diminishing returns, fixed cost, increasing returns, lock in effect, marginal cost, natural monopoly, negative feedback, network externality, operating system, positive feedback, R&D, snowball effect, software

Tuned out (6/22/2006)

The popularity of iPods locks in customer loyalty to the closed iPod-iTunes portable music playing system.

Keywords: Apple, closed system, copy protection, FairPlay Fair Play, iPods, iTunes, lock-in, MP3 player, music, open system, songs

Your Technology or Your Market Access (2/8/2007)

In a buyer's market with many potential sellers, China exacts technology transfers as a condition of entry into its lucrative mass market.

Keywords: Airbus, Boeing, buyer's market, chip fabrication, efficiency, licensing, market access, Motorola, offsets, seller's market, technology transfer, trade distorting