property_rights.pptx

7/30/2019 property_rights.pptx

1/10


2/10

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.


3/10

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


4/10

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


5/10

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



6/10

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



7/10


8/10

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

5


Redefine the Firms Boundaries

EXPANDING / NARROWING


9/10

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

6


Relinquish Your Core Assets

MOVE THE GOALPOSTS, then REALLOCATION


10/10

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

property_rights.pptx

Documents

Transcript of property_rights.pptx