Question

Michael Porter proposes that market leaders should increase the pie for everyone instead of triggering a...

  1. Michael Porter proposes that market leaders should increase the pie for everyone instead of triggering a price war. Can you think of an entrepreneurial venture that did just that?

Homework Answers

Answer #1

A very good example is seen in Oligopolistic market structure in US Telecommunications industry where Verizon and AT&T who are market Leaders increased rates amidst intense rivalry and thus saw customers base erosion which helped new players like Tmobile and Sprint to grab those customers and create level playing field for all and enjoy sizeable profit and sustainability in future.

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