I Bus 300 Ch 11

Front 1

Competitive Dynamics

Back 1

The actions and responses undertaken by competing firms

Front 2

Competitor Analysis

Back 2

The process of anticipating a rivals' actions in order to both revise a firm's plan and prepare to deal with rivals' responses

Front 3

Collusion

Back 3

Collective attempts between competing firms to reduce competition

Front 4

Tacit Collusion

Back 4

Firms indirectly coordinate actions by signaling their intension to reduce output and maintain pricing above competitive levels

Front 5

Explicit Collusion

Back 5

Firms directly negotiate output, fix pricing, and divide markets

Front 6

Cartel

Back 6

An entity that engages in output and price fixing involving multiple competitors

Front 7

Antitrust Laws

Back 7

Laws that attempt to curtail anti competitive business practices

Front 8

Prisoners Dilema

Back 8

In game theory, a type of game in which the outcome depends on 2 parties deciding whether to cooperate or defect

Front 9

Game Theory

Back 9

A theory that studies the interactions between 2 parties that compete and/or cooperate with each other

Front 10

Concentration Ratio

Back 10

The % of total industry sales accounted for by the top 4, 8 or 20 firms

Front 11

Price Leader

Back 11

A firm that has a dominant market share and sets "acceptable" prices and margins in the industry

Front 12

Capacity to Punish

Back 12

Sufficient resources possessed by a price leader to deter and combat defection

Front 13

Market Commonality

Back 13

The overlap between 2 rivals' markets

Front 14

Multimarket Competition

Back 14

Firms engage the same rivals in multiple markets

Front 15

Mutual Forbearance

Back 15

Multimarket firms respect their rivals' spheres of influence in certain markets and their rivals reciprocate, leading to tacit collusion

Front 16

Cross-Market Retaliation

Back 16

The ability of a firm to expand in a competitor's market if the competitors attacks its original market

Front 17

Competition Policy

Back 17

Policy governing the rules of the game in competition in a country

Front 18

Antitrust Policy

Back 18

Laws designed to combat monopolies and cartels

Front 19

Collusive Price Setting

Back 19

Price setting by monopolists or collusion parties at a higher than competitive level

Front 20

Predatory Pricing

Back 20

An attempt to monopolize a market by setting prices below cost and intending to raise prices to cover losses in the long run after eliminating rivals

Front 21

Dumping

Back 21

An exporter selling below cost abroad and planning to raise prices after eliminating local rivals

Front 22

Resource Similarity

Back 22

The extent to which a given competitor possesses strategic endowments comparable, in terms of both type and amount, to those of the focal firm

Front 23

Attack

Back 23

An initial set of actions to gain competitive advantage

Front 24

Counterattack

Back 24

A set of actions in response to an attack

Front 25

Thrust

Back 25

The classic frontal attack with brute force

Front 26

Feint

Back 26

A firm's attack on a focal arena important to a competitor but not the attacker's true target area

Front 27

Gambit

Back 27

To withdraw from a low value market to attract rivals to divert resurces into it and then to apture a high value market

Front 28

Defender Strategy

Back 28

This strategy centers on leveraging local assets in areas in which MNEs are weak

Front 29

Extender Strategy

Back 29

This strategy centers on leveraging homegrown competencies abroad

Front 30

Dodger Strategy

Back 30

This strategy centers on cooperating through joint ventures with MNEs and sell offs to MNEs

Front 31

Contender Strategy

Back 31

Centers on a firm engaging in rapid learning and then expanding overseas