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Top Dog Strategy

Top Dog Strategy. The commitment makes the firm tough or aggressive Strategic variables are strategic substitutes Example: reducing our marginal cost increases our share of the market. Lean and Hungry Look. The commitment would make the firm soft

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Top Dog Strategy

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  1. Top Dog Strategy • The commitment makes the firm tough or aggressive • Strategic variables are strategic substitutes • Example: reducing our marginal cost increases our share of the market

  2. Lean and Hungry Look • The commitment would make the firm soft • Strategic variables are strategic substitutes • Example: diversifying raises our marginal cost and would decreases our share of the market

  3. The Puppy Dog Ploy • The commitment would make the firm aggressive • Strategic variables are strategic complements • Example: investment that lowers marginal cost would further decrease our price

  4. Fat-Cat Effect • The commitment makes the firm soft • Strategic variables are strategic complements • Example: Niche marketing, raising costs

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