Examples of MAGIC


Actions that cannot be matched

  • Patent all or part of the technology for a new product or for the enhancement of an existing product.
  • Trademark a brand name or brand identity for a new product.
  • Link an established, quality brand name or identity (usually trademarked) with a new product.
  • Use a solely-owned distribution channel for a new product.
  • Establish contracts with certain buyers or joint ventures with certain sellers.
  • Compete on unique capabilities.
  • Acquire a firm that has one or more of these advantages.

Actions that probably will not be matched

  • Commit resources that are beyond the financial capabilities of competitors.
  • Develop a product or promotion for a product that is inconsistent with a competitor's product or promotion.
  • Defend a product with vigorous litagation.
  • Bundle products and promotions.

Actions that are not readily visible (stealth)

  • Increase spending on specific R & D projects.
  • Lower costs.
  • Gradually control a supplier, distributer or retailer through dependence.
  • Change margins or other terms of sale.
  • Change compensation or other sales force parameters.
  • Use trade-ins on capital equipment.

Actions that induce gamesmanship (changes that are understandable, short term and targeted)

  • Make understandable product changes.
  • Make understandable price changes.
  • Make understandable distribution changes.
  • Make understandable promotion changes.

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