Ibus 311--Chapter 11: Managing Global Competitive Dynamics

Front 1

LEARNING OBJECTIVES

Back 1

After studying this chapter, you should be able to:

Understand the industry conditions conducive to cooperation and collusion

Outline how antitrust and antidumping laws affect domestic and international competition

Articulate how resources and capabilities influence competitive dynamics

Identify the drivers for attacks, counterattacks, and signaling

Discuss how local firms fight multinational enterprises (MNEs)

Participate in two leading debates concerning competitive dynamics

Draw implications for action

Front 2

competitive dynamics

Back 2

actions and responses undertaken by competing firms

Front 3

competitor analysis

Back 3

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

Front 4

collusion
[COMPETITION, COOPERATION, AND COLLUSION]

Back 4

collective attempts between competing firms to reduce competition

Front 5

tacit collusion
[COMPETITION, COOPERATION, AND COLLUSION]

Back 5

firms indirectly coordinating actions by signaling their intention to reduce output and maintain pricing above competitive levels

Front 6

explicit collusion
[COMPETITION, COOPERATION, AND COLLUSION]

Back 6

firms directly negotiating output and pricing and dividing markets

Front 7

cartel
[COMPETITION, COOPERATION, AND COLLUSION]

Back 7

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

Front 8

antitrust laws
[COMPETITION, COOPERATION, AND COLLUSION]

Back 8

laws attempting to curtail anticompetitive business practices

Front 9

prisoners’ dilemma
[COMPETITION, COOPERATION, AND COLLUSION]

Back 9

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

Front 10

game theory
[COMPETITION, COOPERATION, AND COLLUSION]

Back 10

branch of mathematics that studies the interactions between two competing parties