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Competitive advantages firms can exploit

What marketing, pricing, distribution or other competitive advantages can firms exploit (use the concept of zero sum, positive sum, and negative sum games, and dominant market participants)?

What limits or constraints are on these firms?

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A negative-sum game implies that players win only at the expense of other players' losses. A positive-sum game allows all players to take away more than they contributed. A negative sum game occurs when all the players lose, but some may be bigger losers than others.

First, let's consider marketing in a zero-sum game environment. In this case, there can be only one winning strategy in any competitive market, in the sense that every strategy except one must be losing to at least one other strategy. Each firm tries to be the first to learn customers' needs so as to be the first to reach them. Firms win at the expense of their rivals. Shareholder value created by one firm is matched by shareholder ...

Solution Summary

The following posting discusses the competitive advantages a firm can exploit.