‘Strong competitors act in ways that make life harder for weaker competitors.’ Discuss the implications of this claim.
What will be an ideal response?
Exercise of market power is the most obvious form such actions take, often in ways that are neither
fair nor may be strictly legal. Innovation leading to changes to the ‘rules of the game’ is the
legitimate, longer-term approach to challenge weaker competitors. However, the ‘Red Queen’
paradox expressed in chapter 5 also suggests that innovative enterprises oblige competitive
responses that in turn can make life harder for the innovator.
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Ratification may be inferred from the principal's failure to repudiate an unauthorized contract after becoming aware of it.
Answer the following statement true (T) or false (F)
Which statement describes a managerial action that does not unethically impose costs upon stockholders and other stakeholders?
A. The action imposes unwanted costs on stockholders and stakeholder by giving up some alternatives in favor of others in the interest of maintaining the fiscal stability of the enterprise. B. A portion of some payment is kicked back to the payer as an incentive to make the payment in the first place. C. Financial advisors receive payments from a brokerage house to pay for research and legal services that should be used to benefit the advisors' clients, not the advisors' personal interests. D. A personal interest of a manager hinders the exercise of his or her professional judgment.
Which of the following statements about the protection provided by the Pension Benefit Guaranty Corporation is (are) true? I. Only defined benefit plans are insured. II. Only benefits that are not yet vested are guaranteed
A) I only B) II only C) both I and II D) neither I nor II
Subsidization in insurance pools occurs if a 40-year-old male is charged the same life insurance premium as a 20-year-old male
Indicate whether the statement is true or false