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32 Cards in this Set
- Front
- Back
Blue Ocean Strategy |
Strategy that focuses on developing new markets (“blueocean”) and avoids attacking core markets defended by rivals, which is likelyto result in a bloody price war or a “red ocean." |
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Predatory Pricing |
An attempt to monopolize a market by setting prices below cost andintending to raise prices to cover losses in the long run after eliminatingrivals. |
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Antitrust Law |
Law that outlaws cartels (trusts). |
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Cartel |
An output- and price-fixing entity involving multiplecompetitors. |
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Competitor Analysis |
The process of anticipating rivals’ actions in order to bothrevise a firm’s plan and prepare to deal with rivals’response. |
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Capacity to Punish |
Sufficient resources possessed by a price leader to deter and combatdefection. |
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Market Commonality |
The overlap between two rivals’ markets. |
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Resource Similarity |
The extent to which a given competitor possesses strategic endowmentcomparable, in terms of both type and amount, to those of the focal firm. |
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Competition Policy |
Government policy governing the rules of the game incompetition. |
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Explicit Collusion |
Firms directly negotiate output and pricing and dividemarkets. |
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Antitrust Policy |
Government policy designed to combat monopolies andcartels. |
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Concentration Ratio |
The percentage of total industry sales accounted for by the top four,eight, or twenty firms. |
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Mutual Forbearance |
Multimarket firms respect their rivals’ spheres of influence incertain markets, and their rivals reciprocate, leading to tacitcollusion. |
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Antidumping Laws |
Law that makes it illegal for an exporter to sell goods below cost abroadwith the intent to raise prices after eliminating local rivals. |
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Competitive Dynamics |
Actions and responses undertaken by competing firms. |
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Dodger |
Strategy that centers on cooperating through joint ventures with MNEs andsell-offs to MNEs. |
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Defender |
Strategy that centers on local assets in areas in which MNEs areweak. |
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Multimarket Competition |
Firms engage the same rivals in multiple markets. |
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Price Leader |
A firm that has a dominant market share and sets“acceptable” prices and margins in the industry. |
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Prisoners' Dilemma |
In game theory, a type of game in which the outcome depends on two partiesdeciding whether to cooperate or to defect. |
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Cross-Market Retaliation |
Retaliatory attacks on a competitor’s other markets if thiscompetitor attacks a firm’s original market. |
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Collusive Price Setting |
Price setting by monopolists or collusion parties at a level higher than the competitive level. |
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Counterattack |
A set of actions in response to attack. |
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Extender |
Strategy that centers on leveraging homegrown competenciesabroad. |
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Tacit Collusion |
Firms indirectly coordinate actions by signaling their intention to reduceoutput and maintain pricing above competitive levels. |
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Collusion |
Collective attempts between competing firms to reducecompetition. |
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Game Theory |
A theory that studies the interactions between two parties that competeand/or cooperate with each other. |
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Contender |
Strategy that centers on a firm engaging in rapid learning and thenexpanding overseas. |
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Attack |
An initial set of actions to gain competitive advantage. |
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Dumping |
An exporter selling goods below cost. |
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Antidumping Law |
Law that makes it illegal for an exporter to sell goods below cost abroadwith the intent to raise prices after eliminating local rivals. |
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Cartel (trust) |
An output- and price-fixing entity involving multiplecompetitors. |