Question

Oligopoly

You are a CEO of an athletic shoe firm in an oligopolistic market. Your job is to maximize the profits of your firm. To this end you have to simultaneously expand and protect your market share. This assignment will focus on market share protection. Given what you know about ologopoliostic behavior, look over the new strategy of a rival firm. I want you to describe how you would counter your rival’s strategy. See example.

Example:

New Strategy: Yahoo News has discovered that Quasar Athletic Shoe Company has signed international soccer star, David Beckham, to a 1-year, $20 million mega endorsement contract. The first television and print ads featuring Mr. Beckham will hit the market in 9-12 months.

Answer 1