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战略行为理论研究-assignment代写范文

2016-11-08 | 来源:51due教员组 | 类别:更多范文

英国论文代写精选范文:“战略行为理论研究”,这篇文章主要讲述了政府采取反垄断法来规范市场中企业所采取的战略行为,以防止他们利用消费者的利益或造成不必要的伤害。根据卡尔顿和佩罗夫(2005)的舍曼法案(1890)是第一和最重要的美国反垄断法。本文将专注于企业的非合作战略行为。

一个寡头垄断的市场环境给企业的激励采取的战略行为,因为企业的相互依存和需要考虑的其他公司的反应作出决策的时候,因为它是免费的决策调整市场环境对其有利。根据史米斯和圆(1998)本质的寡头垄断是刻意的努力,由企业在获得更大的销售量超过其竞争对手和卓越的品牌形象的竞争对手的策略,不受影响,所以,为了生存的竞争对手,它将通过参与行动,计数器的其他公司的战略作用的反应。他们补充说,企业之间的这种竞争行为是保留和鼓励的竞争政策。一些非合作的战略行为涉及;

Anti-Trust laws are put in place by the government to regulate the strategic behaviours adopted by firms in the market so as to prevent them from taking advantage of the consumers or inflict unnecessary harm on each other. According to Carlton and Perloff (2005) the Sherman Act (1890) is the first and most important U.S antitrust law. This paper will concentrate on the non-cooperative strategic behaviour of firms, using the case study of the ball point pen as a focus.

An oligopolistic market environment gives firms the incentive to adopt strategic behaviours, because of the interdependence of firms and the need to take into consideration the reaction of other firms when making its decision, since it's free to make decisions to adjust the market environment to its favour. According to Smith and Round (1998) the essence of oligopoly is the deliberate efforts made by firms to exceed its rivals in obtaining a larger sale volume and a superior brand image that are unaffected by the strategies of its rivals, so therefore, in order for the rival firm to survive, it will react by engaging in actions that will counter the effect of the other firms strategy. They added that this competitive behaviour among firms is preserved and encouraged by competition policies. Some non-cooperative strategic behaviour involves;

entry deterrence; such as, pricing strategies, for example, predatory pricing, limit pricing, dynamic limit pricing, etc;

In order for non-cooperative strategic behaviour to be successful, a firm must have an added advantage over its rival; it must be able to do unto its rival before they can do unto it, and also the firm must make commitments that will convince its rivals that its threats are credible regardless of whatever strategic move its rival will make; for example, this can be done by investing in a better production plant that would increase its output capacity. In some cases, non-cooperative strategic behaviour is not feasible, especially where the firms involved are equally efficient and have identical cost.

The case study of this paper is adopted from the book 'Market Industrial Organization' by Carlton and Perloff (2005) titled 'Only a smile remained'. According to the case study, Laszlo Jozsef Biro in 1939 obtained patent on the ball-point pen. In 1943 he started producing and selling the pens. The U.S. Air Force was interested in purchasing large quantity of the pens. This spurred the interest of the three big pen manufacturers; Parker, Sheaffer and Eversharp. But Milton Reynolds beats the other firms to the market (first mover advantage) after designing a new pen around the Biro model. Reynold started production and sold at $12.50 at production cost of 80?¢ per pen. By early 1946, Reynold expanded production to 30,0000 pens per day, encouraging entry. In mid-1946, Sheaffer and Eversharp entered the market and a price war in form of price cutting ensued. By the end-1946 there were approximately 100 manufacturers in the market. By 1948 ball-point pens sold at 39?¢ and cost 8?¢-10?¢ to produce. At this point Reynold had zero market shares, which led the company to stop production in the U.S.

Curtis et al (2005) states that, "...in this new age of competition, fast companies rapidly generates advantages and market power while faster ones generate more advantages and greater market power, and no one's advantages are guaranteed to last long". Bill Gate in Curtis et al (2005) states that, ''...success depends not so much on how large the company is but rather on moving aggressively to the next advantage.'' Considering the case study, Reynold had an advantage as the first mover in the market and so he was able to acquire market power, but this lasted for a short period, because as its rivals entered the market, they were able to develop a better advantage, in the sense that they were able to produce ball point pens at cheaper cost which reduced its price in the market and as well drove down the price of Reynold's pens to the extent where Reynold was not able to make sufficient economic profit and so exited the market. However, it should be noted that Reynold may have anticipated the strategic actions of its rivals and the price war that ensued and so endeavoured to handle it by engaging in a strategic behaviour of its own known as dynamic limit pricing. Carlton and Perloff (2005) refers to dynamic limit pricing as a strategy were a dominating firm sets price or output over the course of time, so as to lessen or discourage rivals from entering into the market. They further explain that, since setting high price and maintaining it on the short-run, attract more entry into the market, and keeping prices very low to prevent entry results to low profits on the long and short-run which in turn reduces market price, therefore, a dominant firm sets high price and slowly reduce it as entry occurs, this will enable the firm obtained high profits on the short-run then a lower profit in the long-run as more firms enter the market to compete. However, to a dominating firm that adopts this strategy, high profits today are worth more than are profits in the future.

Joseph Schumpeter in Curtis et al (2005) described competition as a perennial gale. It is in Schumpeter's opinion that rivals react as firms act, and it is in this process of action and reaction that advantage is generated and obliterated. Schumpeter referred to this process as creative destruction. In extreme cases, where a lot is at stake, firms can go as far as engaging in multimarket competition or industrial espionage and as such initial advantages are rapidly destroyed through the creative destruction process.

The reasons for the aggressive competition between firms can be attributed to globalization, technological upgrade, privatization and deregulation. Although the increase in competition and speed of response has greatly contributed to the increase in price cutting for many products and services, some differentiated goods and service have not been affected by price cutting, for example, luxury goods such as Rolex watches (Curtis et al, 2005)

In comparing the different non-cooperative strategic behaviour, Comanor and Frech (1984) states that predatory conducts are measures by firms that results to it acquiring short-term losses while at the same time lowers the profit of rival firm, which will induce the rival firm to exit or lessen its competition in the market. That means that the incumbent firm reduces its price below that of its rival until it succeeds to drive the rival firm out of the market. When this strategy is successful, the incumbent firm then revert to its monopolistic price. Salop and Scheffman (1983) argues that raising rival's cost is preferable to that of predatory pricing, because it enables a firm to avoid making short-run profit loss but increase its profits even when the rival firm does not exit the market. An example of this strategy may be in a case where a dominating firm lobbies with the government to set up licences that must be obtained by entrants in order to operate in a market. This then can deter potential rivals to enter the market. In Comanor and Frech (1984) opinion, in order for both and strategic entry deterrence such as raising rival cost and predatory pricing to be successful there must be an existing asymmetry relationship between the incumbent firms and rivals. Asymmetry in this case may entail that one firm takes on a commitment before its rival can do same, if this is achieved the rival firm's actions will be restricted by it. This then gives the incumbent firm or dominating firm a significant advantage over the other.

"In an attempt to regain competitive vitality, firms are trying to ''get fit.'' If surprise and first-mover activity are what wins, a firm must be prepared to use stealth and move fast. If winning takes world-class manufacturing, the firm must beat its competitors in the workshops. If it takes short development time, the firm must learn to be swift. If intimidation and market power are necessary...the firm must be prepared to use its power. If a company cannot beat its competitors outright, it must...join forces or work with other firms to improve its competitive position. Such are the realities of competition in today's disruptive competition". (Curtis et al, 2005)

However, to fulfil the demands of customers, firms have realized that they cannot do it alone. 50 per cent of the total Fortune 1000 revenue can be associated to alliances, marketing networks and other cooperative activities. Firms are realizing that engaging in collaborative actions can result to strategic competitive benefits if done efficiently. It has been observed that revenue for firms that adopt cooperative strategies grows more than twice that of non-cooperative firms. Thus partnering has become the central focus of many firm's strategy and the foundation in the new-order business models which are being created and implemented (Richard and Andrew, 2009).

In conclusion, we have discussed in this paper that it is due to the actions and reactions that firms create competitive advantages as they learn by doing. Therefore, firms have to compare among alternative actions and decide on the best actions to take in regards to the firm's available resources and the anticipated responses by rival firms. And so, in a market environment, firms must decide on whether they should engage in cooperative actions or non-cooperative actions.

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