Mehrotra, Sunil
September 1988
Marketing Science;Fall88, Vol. 7 Issue 4, p390
Academic Journal
The article presents information on marketing mix with special reference to professor Joan Robinson's paper is an important contribution to the literature on competitive analysis. From a practitioner's point of view it provides a useful framework for developing a response to a new entrant and for anticipating a competitive response. Robinson's findings are generally consistent with my experience in three consumer industries. Major Appliances mature life cycle stage, Consumer Electronics growth and Consumer Banking recently deregulated. Particularly useful is the finding that the scale of entry and industry concentration generally Lead to an aggressive response. For example, any new entry by either General Electric Co. or Whirlpool Corp. in major appliances is met with aggressive response from the other. Witness, for example, the color war in the early 1980's and the more recent bidding for the acquisition of Roper. Similarly, innovative entries are met with more aggressive response-note, for example, the competitive response to Chase Manhattan Bank's introduction of market-indexed CDs.


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