Post on 14-Apr-2018
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The LAWis often not the best defense
against theft of intellectual property.Far more effective in such cases are
MARKET-BASED strategies
that KEEP PIRATES IN PORT.
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Companies facing threats to their intellectual property have a range ofalternatives, from defending their core assets to embracing the businessesthat threaten those assets.The choice of strategiesand tactics to support themdepends on thenature and intensity of the threat and the strength of a companys
resources.Market Strategies
? ? ? ? ? ?Defend Core Assets Embrace the Threats
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PREEMPTION :Being first to market so that you can capture profit of monopoly scale.- Intel preempts rivals by tightly managing its relationships with externalconstituencies( Customers, Users, and Suppliers)
OVERWHELMING:- Capital One, the credit card issuer, overwhelms its rivals with a blizzard of newproduct
KEEP THEIR INTELLECTUAL PROPERTY OUT OF SIGHT FROM THE START
: For companies that lack Intels or Capital Ones resources and core strengths- Cokes recipe has never been deconstructed or revealed
Market Strategies
1. Nip It in the bud
1
Act Before Competitors , So Catch Their Breath !
PREEMPING / OVERWHELMING / EXCLUDING
Defend Core Assets Embrace the Threats
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CROSS-LICENSING AGREEMENTS:- SEDATING EFFECT
on an underground market in weakly protected intellectual property.Companies do not sue one another for infringement because they knowthey are likely to infringe the infringers patents sometime in the future.
Market Strategies
2. Prescribe a Sedative
2
Lower The Competitive Intensity
THREATEN TO RETALIATE
Defend Core Assets Embrace the Threats
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CREATE SYNERGIES AMONG RELATED BUSINESSES:Companys economic viability is usually tied to one or a few key properties.
By forging synergies between such properties and adjacent onescompany can protect its profits from rivals and poachers.- Hit television shows leads audiences to the next program and
CROSS PROMOTE other shows on the same network.
Market Strategies
3. Dig a Honey Pit
3
Entangle Key Assets
FORGING SYNERGIES
Defend Core Assets Embrace the Threats
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REDEFINE BOUNDARIES:Challenge for companies how to get a piece of COMPLEMENTS.
- Unlike the increasing piracy rates in music industry, not all music-relatedbusinesses are vulnerable. For example, blank CDs, computers with a CDburner , and portable MP3 players.
Market Strategies
5. Move the Goalposts
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Defend Core Assets Embrace the Threats
Redefine the Firms Boundaries
EXPANDING / NARROWING
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REALLOCATE RESOURCES TO ADJACENT BUSINESSES:For companies that have moved the goalposts and now encompass moreviable businesses. It may pay to disregard the decline in their core.
- Several of music companies viewed the online customer as a threat, theytried to charge as much for downloads as they did for CDS, even thoughthe costs of online delivery are minimal.By contrast, Applewasnt afraid to set prices low enough to change music
buying ha bits.
Market Strategies
6. Let the Dogs Out
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Defend Core Assets Embrace the Threats
Relinquish Your Core Assets
MOVE THE GOALPOSTS, then REALLOCATION
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Market Strategies
1 2 3 4 5 6NIP IT
In the Bud
Prescribe
Sedative
DIG
HONEY PIT
Make
BUNDLE
Move
Goalposts
Let the
DOGS OUT
Preempt
Deny access
Out-
innovation
ThreatenTo retaliate
CreateSynergies( Amongrelatedbusinesses )
Marry assetsTocomplementary
products
PreserveThe core with
Add-ons
Expand
into rivals
businesses
Narrow your
Own business
Reallocate
Resources to
Adjacent
businesses