Firm strategy

Descrição

Mapa Mental sobre Firm strategy, criado por Jia Jun Neo em 08-05-2018.
Jia Jun Neo
Mapa Mental por Jia Jun Neo, atualizado more than 1 year ago
Jia Jun Neo
Criado por Jia Jun Neo mais de 7 anos atrás
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Resumo de Recurso

Firm strategy
  1. Pricing
    1. Elasticities
      1. PED
        1. YED
          1. XED
            1. PES
            2. Px taker
              1. Accepting the Px mkt determines
                1. e.g PC Firms
              2. Price rigidity
                1. ↓ Px, rivals will follow suits, but when ↑ Px, rivals will not follow suit
                  1. Kink DD theory
                    1. e.g Oligopoly
                2. Px setter
                  1. Limit pricing
                    1. below the short run profit-maximising price
                      1. To drive out competition
                        1. e.g monopoly
                    2. Predatory pricing
                      1. keep price below AC
                    3. Profit maximisation MC = MR
                    4. Non-Price
                      1. R & D
                        1. i.e Real differences
                          1. improve the quality and the features of the good
                            1. ↑ price inelastic dd
                              1. ↑ prices
                          2. A&P/Branding
                            1. i.e Imaginary differences
                              1. ↑ awareness and the appeal
                                1. ↑ DD of the good
                            2. Others
                              1. Output strategy
                                1. ↑ output
                                  1. ↓ output
                                    1. Produce at MC = MR
                                  2. Alt Objs
                                    1. LT profit maximisation
                                      1. Growth maximisation
                                        1. Corporate image
                                      2. Collusion
                                        1. Formal
                                          1. Explicit price-fixing
                                            1. Cartels
                                              1. Act like 1 big monopoly
                                          2. Tacit/Informal
                                            1. Price leadership
                                              1. Dominant firm establishes price/price changes
                                          3. M&A
                                            1. Cost adv
                                              1. IEOS
                                                1. Remove duplication
                                                  1. ↓ Adv cost
                                                  2. Revenue adv
                                                    1. ↑ DD
                                                      1. ↑ Px Inelastic DD
                                                        1. R&D