Since 2003, Quasar Computers has been operating as a monopoly; insulated from competition. As our product line matures and others enter the market Quasar should pursue the following actions to prolong our profitability.
Prolonging our Products Profitability
Proactive Use of the Legal System
According to the simulation, our product patents are about to expire and we expect Orion Technology to launch a produce that will directly compete with ours. Team A views this moving towards an oligopoly market structure. Faced with this new competition, Quasar should take legal action to protect its assets. This should include protecting intellectual property rights through
non-competition agreements with employees, patent extensions, additional product patents, and protecting our existing copyrights and trademarks. Use of the legal system in this manner may it more difficult for competitors to enter the market, thereby preserving profits.
Differentiation of Products
Faced with increased competition, Quasar can prolong profitability through
product differentiation. We should position our products as being superior to any competitor. We invented the product and have more experience and expertise with it. We should actively market our superior expertise in our consumer advertising and within each individual sale. This constant message that we have superior expertise will send a clear message to customers and make it more difficult for new competitors to sell their products. For new market arrivals, the company should devote resources to developing anti-competitive tools for our sales teams so they can consistently defend our market share from our competition.
Use of purchasing power
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