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ABS-3 (strategic (raise rivals' costs (e.q. vertical foreclosure)…
ABS-3
strategic
raise rivals' costs (e.q. vertical foreclosure)
when a near monopoly position allows you to foreclose your rivals from getting access to key resources.
reduce rivalry through mutual forbearance
having competition in multiple markets we raise the stakes that companies would not want to fight one another.
eliminate competition by subsidizing a price war
leverage our successful position in one to compete more successfully in another.
minimize transation costs of using markets
financial
capitalize on opportunities in related market
reduce volatility by diversifying assets.
capitalize on opportunities in unrelated markets
operational
transfer/ leverage rent-generating assets
improve coordination among business
outsourcing
alliances
exploit economics of scale and scope
limits on firm scope
bureaucratic costs
firms' coordinating layers of management
slow, inflexible decision-making
can't adapt market change well
agency costs
difficult to monitor and sanction
orgtanizational politics
opportunistic behavior of managers and employees
government
antitrust to reduce monopoly power
introduction
corporate strategy
a firm operate and how they govern those operations
different to business strategy
is business strategy's extension