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KillerApps Micro: Competitive strategy
A cartel in detergents broke up over defections from agreed prices and promotion practices.

Chinese companies try to move up the value chain by buying established brands.

Funeral directors might be more concerned about getting the most perks offered by airline loyalty programs than the lowest fares for shipping dead bodies.

The middleman role of music labels to produce, distribute, and promote albums has been compromised by the Internet to the benefit of the artists and consumers.

China's low labor cost, abundant test animals, tax incentives, and permissive research environment have contributed to its comparative advantage in drug development.

In a buyer's market with many potential sellers, China exacts technology transfers as a condition of entry into its lucrative mass market.

High-end-orientated garment fashion designers leave a lot of money on the table for the knockoff competitors.

Loss leaders might conceal punishing fee traps for the unwary myopic consumers.

The successful emergence of once-slighted digital cameras has reshuffled the cast of major players in the photography business.

McDonald depends on free toys to drum up sales of mature Happy Meals.

Store brands gain competitive advantage by free-riding on name brandsí brand recognition and R & D.

Many companies earn more revenues from selling replacement parts than selling the complementary products.

The popularity of iPods locks in customer loyalty to the closed iPod-iTunes portable music playing system.

Winners in the battle among proprietary standards can keep out competitors and lock in existing customers

The low marginal cost of reproducing DVD movies has made it difficult to stamp out the bootleg DVD business in China.

The creation of a new market typically involves the simultaneous development of interlocking parts. Sacrificing the short-term gain for at least one part is often necessary to overcome initial supplier or buyer inertia.

Mass customization using e-commerce and digital production technology has brought uniquely different products to suit individual tastes and a new component (niche competition) to the conventional textbook market structure.

By vertically integrating the chicken business and applying quality control and standardization to all the steps from production to marketing, Tyson Foods has brought better and cheaper chicken to consumers, higher wages to workers and fatter returns to shareholders in a once low-profit commodity business.

By providing incentives for brand-name drug companies to fund expensive R&D, temporary patents for expensive blockbuster drugs inadvertently lead to cheaper generic rivals when the patents expire.

Market competition requires a balance of power between buyers and sellers.

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