9. Market Structure and Competitive Strategy
9.1
Competitive StrategyStatic 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.
9.2
From Brands to Generics - No Monopoly, No CompetitionBy 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.
9.3
Battles of StandardsWinners in the battle among proprietary standards can keep out competitors and lock in existing customers
9.4
Systems Competition and Network EffectsA 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.
9.5
Extreme Image MakeoverThe successful emergence of once-slighted digital cameras has reshuffled the cast of major players in the photography business.
9.6
Beating the Pirates to the Punch BowlThe low marginal cost of reproducing DVD movies has made it difficult to stamp out the bootleg DVD business in China.
9.7
Bottom FishingRecession and bear stock market provide an environment for the fittest firms to expand and consolidate at the expense of weaker competitors.
9.8
Loss-leader EconomyLoss leaders might conceal punishing fee traps for the unwary myopic consumers.
9.9
Niche CompetitionMass 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.