valuable capabilities to attack, deter or retaliate; rarity of certain assets; imitability of
competition; organizational skills for actions; resource similarity with rivals
, Institution-based considerations - Answers -Advise managers to be well versed in the
"rules of the game" governing domestic and international competition
International competition: primarily trade/anti-dumping policy
American Anti-trust policy - Answers -Pro-consumer
Collusive price setting - Answers -Anti-trust law that refers to monopolists or collusion
parties setting prices at a level higher than the competitive level
Predatory pricing - Answers -Anti-trust law that refers to practices of setting prices
below costs in the short run to destroy rivals with the intent of raising prices to cover
losses in the long run after eliminating rivals
Extraterritoriality - Answers -The reach of one country's laws to other countries
Dumping - Answers -An exporter selling below cost abroad and planning to raise prices
after eliminating local rivals in an attempt to manipulate international competition
Export cartels - Answers -Alliances of firms that cooperate in exporting
Attack - Answers -An initial set of actions to gain competitive advantage.
Counterattack - Answers -a set of actions in response to an attack
3 main types of attack - Answers -Thrust: brute force
feint: attack on a focal arena important to a competitor
gambit: a move that sacrifices a low-value piece in order to capture a high-value piece
or improve one's position significantly
3 distinct elements of a counterattack - Answers -Awareness: of competition, market
commonality, & resource similarity
Motivation: choose to attack wisely
Capabilities: managers must know their strengths and use them
4 legal ways to "wink" at competitors - Answers -1. Non-aggression (fat cat)
2. Market entry has the same effect as firms may enter new markets to seek mutual
forbearance by establishing multi-market contact
3. Firms can send an open signal for a truce
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