Case Study Of Hoffmann-La Roche Case

When examining competitive advantage, it is also important to consider the market and take into account the existing competition against larger firms.

Member countries’ laws and regulations should permit authorities to suspend, to an appropriate degree, from competition for public contracts or other public advantages, including

equilibrium. The new company is now run as a monopoly, and this paper shall explain

Businesses are not only faced with competition within the industry they operate in. They also face competition from businesses in other industries.

new product offerings by a competitor may require adjustments to one or more components of

Antitrust laws are classical examples of adapting tendencies of government to the changing times. The history of competition act, 2002 is a good example of the proverb that the road to hell is paved with good intentions. The Monopolies and Restrictive Trade Practices Act, enacted in the era of restrictive economy found itself to be obsolete and redundant with the opening of Economy in 1991, was vacuum was filled by passage of Competition Act, 2002. Cartels are prohibited by most countries in most of the countries, whether they are domestic or foreign firms. Over the years, international cartels, which comprise firms more than in one country were considered to be illegal,

A monopoly exists when an organization produces and sells a good or services for which there are no close substitutes and other organizations are prevented by some type of entry barrier from entering the market (Thomas & Maurice, 2010). The entry or potential entry of a new organization into a market can gradually destroy the market power of existing organizations by increasing the number of substitutes (Thomas & Maurice, 2010). Therefore, an organization can have a high degree of market power only when strong barriers to the entry of new organizations exist (Thomas & Maurice, 2010). A strong barrier of entry exists when a new organization has difficulty entering a market were existing organizations are making a profit (Thomas & Maurice, 2010).

dominant incumbent even if the incumbent priced its products substantially above competitive levels for a significant period of time” (“Microsoft: Court’s Findings…). Obviously, the rival companies such as, IBM and Apple, have found great fact, that

When companies are making decisions, the companies do not worry about how the rivals will react, in part to each company’s actions are unlikely to affect its rivals to a great extent hence they are independent. In addition, there is perfect knowledge in the market hence new companies have the freedom to enter into the industry. The companies are also profit maximizers, producing output where marginal revenue equals marginal cost; the profit maximising condition. Companies in a

Existing Competitors. Rivalry among competitors within an industry use price discounting, new products, marketing, and other techniques to be competitive. Profitability of an industry suffers from high rivalry. The intensity with which companies compete and the basis on which they compete determine to which degree rivalry brings down an industry’s profitability (Porter, 2008). Pure competition is considered by economists as a competition with a high

The more prospective the competitive advantage the more it becomes hard for it's advantage to be neutralized .

Competitive rivalry exists between companies with the same or similar products/services and similar markets. Factors to be considered include:

Nevertheless, being a market pioneers also brings numerous disadvantages (Lieberman & Montgomery, 1988). One main disadvantage is that “market pioneers may fail to change their business practices when the market changes” (Lieberman & Montgmery, 1988: 925). Also late movers will free ride on the foundations the market pioneer has created in the beginning.

High rivalry from family owned businesses, full line dairies, and large international companies. High threat due to loss of patent; product can be copied by competition and former employees

What is important here is the number and capability of the competitors – if there are many competitors, and they offer equally attractive products and services, then the business is most likely to have a better power in the situation. If suppliers and buyers don 't get a good deal from us, they ' will walk off elsewhere. Alternatively, if no-one else can do what we do, then we can often have tremendous strength.