Microeconomics: Competitive strategy
Battles of Standards (5/9/2006)
Winners in the battle among proprietary standards can keep out competitors and lock in existing customers
Winners in the battle among proprietary standards can keep out competitors and lock in existing customers
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.
The low marginal cost of reproducing DVD movies has made it difficult to stamp out the bootleg DVD business in China.
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.
Recession and bear stock market provide an environment for the fittest firms to expand and consolidate at the expense of weaker competitors.
Cleaning Up the Detergent Market (1/25/2012)
A cartel in detergents broke up over defections from agreed prices and promotion practices.
A cartel in detergents broke up over defections from agreed prices and promotion practices.
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.
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.
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.
Funeral directors might be more concerned about getting the most perks offered by airline loyalty programs than the lowest fares for shipping dead bodies.
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.
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.
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.
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.
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.
The successful emergence of once-slighted digital cameras has reshuffled the cast of major players in the photography business.
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.
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.
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.
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.
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.
High-end-orientated garment fashion designers leave a lot of money on the table for the knockoff competitors.
Loss-leader Economy (1/10/2007)
Loss leaders might conceal punishing fee traps for the unwary myopic consumers.
Loss leaders might conceal punishing fee traps for the unwary myopic consumers.
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.
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.
McDonald Toys Inc. (6/22/2006)
McDonald depends on free toys to drum up sales of mature Happy Meals.
McDonald depends on free toys to drum up sales of mature Happy Meals.
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.
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.
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.
China's low labor cost, abundant test animals, tax incentives, and permissive research environment have contributed to its comparative advantage in drug development.
Shadow Branding (6/22/2006)
Store brands gain competitive advantage by free-riding on name brands’ brand recognition and R & D.
Store brands gain competitive advantage by free-riding on name brands’ brand recognition and R & D.
Streaming Revenues (6/22/2006)
Many companies earn more revenues from selling replacement parts than selling the complementary products.
Many companies earn more revenues from selling replacement parts than selling the complementary products.
Survival of the Fittest (3/7/2002)
In the PC business, low profit and generic products are compatible with market domination.
In the PC business, low profit and generic products are compatible with market domination.
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.
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.
The Brand Game (9/11/2007)
Chinese companies try to move up the value chain by buying established brands.
Chinese companies try to move up the value chain by buying established brands.
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.
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.
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.
Knowledge-based industries subject to increasing returns because of high R&D fixed costs and low variable costs naturally tend to monopolize the market.
