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Top Dog Strategy The commitment makes the firm tough or aggressive

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Presentation on theme: "Top Dog Strategy The commitment makes the firm tough or aggressive"— Presentation transcript:

1 Top Dog Strategy The commitment makes the firm tough or aggressive
Strategic variables are strategic substitutes Example: reducing our marginal cost increases our share of the market

2 Lean and Hungry Look The commitment would make the firm soft
Strategic variables are strategic substitutes Example: diversifying raises our marginal cost and would decreases our share of the market

3 The Puppy Dog Ploy The commitment would make the firm aggressive
Strategic variables are strategic complements Example: investment that lowers marginal cost would further decrease our price

4 Fat-Cat Effect The commitment makes the firm soft
Strategic variables are strategic complements Example: Niche marketing, raising costs

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