Article Abstract:
Strategic management research has often hypothesized that large firms have higher prices than competing small firms because large firms have market power which creates price collusion. The firms also have the ability to advertise which creates an image of quality for products. Empirical research on competitive pricing involving a study of the major home appliance industry reveals that larger corporations often have lower prices. The results also show advertised products are often not higher priced. The study indicates a strong corporate effect on prices with a common corporate policy permeating the pricing decisions of large firms' product lines. Economies of scale or scope are vital in the industry and are partly transferred to consumers through low prices. Additionally, research reveals that advertising does not elevate prices.
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Article Abstract:
Three alternative value configurations are proposed to support a theory of value structure for competitive advantage. Extending the value chain framework introduced by Michael Porter (1985) and employing the long-linked, mediating technologies proposed by J. Thompson (1967), this analysis examines the notion that the value chain, the value shop and the value network are different generic value configuration models allowing the exploration of firm-level value creation logic throughout a wide range of industries and firms. The value chain analysis should be recast into value configuration analysis, which facilitates clearer critical analysis assumptions. This value configuration analysis is a method for investigating the firm-level competitive advantage grounded on a theory of three value creation technologies and logics.
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Article Abstract:
Competitive market signaling allows business enterprises to communicate their intents to competitors. As antitrust laws prohibit companies to directly exchange information on such issues as pricing, product introductions, market entry, or capacity selection, business executives now convey and receive such information through press releases, trade association speeches, management interviews, and other public announcements. The advantages of competitive market signaling includes pre-emption and the formulation of competitive norms of conduct. Competitive cuing, cannibalization of product lines, and possible antitrust implications may also result from this practice.
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