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What defensive tactics can a company use to gain competitive advantage? |
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Answer
Raise structural barriers through:
- offering full line of products
- signing exclusive distribution agreements
- raising buyer switching costs by offering lower cost for training
- raising cost for competition to gain trial users by decreasing your cost
- increasing the scale of economies
- patents and licensing
- limiting access to facilities
- sigining exclusive contracts with suppliers and buying key locations
- avoiding suppliers who deal with competition
- encouraging the government to increase barriers.
Increase expected retalitation by making a big deal of a small thing.
Lower the inducement for attack by keeping pricing low and constantly decreasing costs to keep profit high.
First answer by ID3228058490. Last edit by Fendy829. Contributor trust: 0 [recommend contributor]. Question popularity: 28 [recommend question]
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