Competitive Threat Research Articles

Game Theory Applications In The Airbus-Boeing Dispute

This study examines the intricate trade dispute between Airbus and Boeing which took place from the late 1970s all the way till 2021. By using game theory tools including Nash equilibrium, mixed strategies, Stackelberg competition and credible threats, I can explore the strategic trade decisions, such as tarif s, subsidies and complaints to the WTO, taken by each player and how this af ects the overall competitiveness and the health of the LCA sector. Each of these games use data from the real world in order to ef ectively depict the outcomes that could have arisen and those that actually happened. The key findings were able to illustrate how although some of the theoretical economic ideologies were used, the real life decisions still deviated from the stable outcomes due to external pressures and factors. The results provide us a more intricate understanding of the trade world and the economic environment of the LCA industry

Strategic behavior and entry deterrence by branded drug firms: the case of authorized generic drugs.

Pharmaceutical firms that market brand-name drugs lose substantial market share to generic manufacturers after patent expiration. As a response to the threat of generic competition, branded manufacturers pursue defensive strategies. One such strategy is the launch of authorized generic drugs. Authorized generic drugs are produced by branded manufacturers to compete against other generic drug entrants. Such competition may lower the expected profits of generic drug manufacturers and hence deter future generic drug entry. This paper models and empirically examines whether the introduction of authorized generic drugs changes the independent generic firms' decisions on entering the market. We use an instrumental variable approach to evaluate the effect of authorized generic drugs on the responses of generic manufacturers. The results show that the entry of authorized generic drugs deters and delays the entry of generic drugs.

Analisa Strategis Kesiapan Operasional TNI Angkatan Laut dalam Menghadapi Dinamika Lingkungan Maritim

Indonesia, as the largest archipelagic nation globally, faces significant strategic challenges in its maritime domain. The Indonesian Navy's preparedness is paramount in safeguarding the nation's interests amid evolving geopolitical dynamics, resource competition, and maritime security threats such as piracy and terrorism. This paper examines the role and importance of the Operational Ready Force (ORF) within Indonesia's maritime defence strategy. By employing strategic analysis, the study evaluates the Navy's operational readiness, focusing on resource allocation, technological advancements, and international cooperation necessary to enhance the ORF's effectiveness. The research utilizes a comprehensive methodology, including literature review, official documents, and expert interviews, to provide an in-depth understanding of the Indonesian Navy's readiness to address dynamic maritime environments. The paper also explores the strategic implications of global, regional, and national maritime developments, emphasizing the necessity for an adaptive and resilient maritime strategy. The findings suggest that ORF is crucial in bolstering the Indonesian Navy's capabilities, enabling rapid and effective responses to maritime threats while protecting national sovereignty. The study concludes with recommendations for further development of ORF, ensuring Indonesia's continued maritime security and regional stability through integrated technology, strengthened international collaboration, and adaptive threat response strategies.

Do Supply Chain Characteristics Influence a Rival Firm's Responses to a Focal Firm's Product Preannouncements? A Competitive Dynamics Perspective

ABSTRACTThis study investigates how supply chain characteristics influence a rival firm's response to a focal firm's product preannouncements from a competitive dynamics perspective. Indeed, many firms recognize that it is critical to leverage their supply chains to gain a competitive advantage. We propose that common suppliers enhance a rival firm's awareness of the focal firm's credibility, reducing competitive responses. In addition, a rival firm's strong supplier inventory performance will motivate rivals to respond more aggressively, while the rival's supply–chain partnerships enhance its capability to react to the focal firm. Using panel data from S&P 1500 firms between 2007 and 2015, our findings provide support for our hypotheses, illustrating that supply chain characteristics can significantly influence a rival firm's responses to the focal firm's preannouncements. This research contributes to the competitive dynamics and supply chain management literature by highlighting the strategic role of supply chain characteristics in interfirm competition, offering practical insights for managers on leveraging supply chain resources to effectively navigate competitive threats.

Model of the “Economic Cross” of the Digital Platform: Opportunities and Conditions for Interindustry Technological Convergence

The platform economy is an objective stage in the evolution of the digital economy, whose development is carried out under the influence of the trend of involving a large number of SMEs and individuals in economic relations as their direct participants. Unlike the pre-digital era, when operational commercial direct interaction between small participants in economic relations turned out to be impossible, communication technologies of the second decade of the 21st century have created favorable opportunities for the development of independent businesses of individuals and small professional teams. The process of commercialization of household resources is actively taking place in the form of the development of private blogs as platforms for commercial advertising and mutual trade of goods and services by individuals online, which creates a direct competitive threat to traditional trading companies. The current stage in the development of online participation of SMEs and individuals in commercial relations is the development of outsourcing relationships, within which part of the processes implemented by large businesses independently using hired personnel and their own infrastructure will be delegated to independent network structures on a competitive basis. At the same time, in proportion to the growing popularity of e-commerce, public demands for the security of such transactions are increasing, which is especially important in conditions of sanctions uncertainty and high risks of supply chain collapse. This circumstance determines the business request for systematization of the digital space and its centralization, the terminal stage of which is an inter-industry digital platform. The purpose of the scientific article is to develop a system of proposals for the formation of a national intersectoral outsourcing platform based on the “economic cross” model. A system of innovative solutions has been developed regarding the organization of economic interaction between subjects, the procedure for financing the activities of the platform by its participants, and the distribution of indirect industry income arising from the functioning of the platform.

Immigration, domestic labor, and earnings inequality among native-born women in the US

ABSTRACT The wage effects of immigration have been widely studied, yet much of the research has focused on competitive threats to low-skilled native-born men. In contrast, this paper applies a gender lens to explore possible complementary relationships between immigration-induced outsourcing of domestic work and the earnings of native-born women, while recognizing the classed and racialized nature of domestic labor. Empirically, this article examines subgroup variations in earnings among full-time employed native-born women by education and race/ethnicity in relation to the state share of immigrants in the domestic service sector. The analysis combines data from the 2012 American Community Survey with state-level work-family policy data collected for 2010, accounting for compositional differences and selection into the labor force. Likely due to increased availability of affordable domestic services, the results show a higher immigrant share is associated with greater earnings for native-born women overall. However, education and race/ethnicity moderate this association, indicating that highly educated non-Hispanic white women benefit more than other women because the labor process and outsourcing of household production are classed and racialized. Hence, states with a higher share of immigrants filling domestic services exhibit wage dispersion patterns that reinforce intersectional inequality among native-born women.

Genetic Variability and Evolutionary Dynamics of Papaya Ringspot Virus and Papaya Leaf Distortion Mosaic Virus Infecting Feral Papaya in Hainan Island.

The commercialized genetically modified (GM) papaya cultivars have protected papaya from the devastating disease caused by papaya ringspot virus (PRSV). However, papaya leaf distortion mosaic virus (PLDMV), which causes similar infection symptoms but is serologically distinct from PRSV, was found as a competitive threat to the papaya industry. Our study surveyed the occurrence of PRSV and PLDMV as well as the transgenic markers of the 35S promoter from cauliflower mosaic virus (CaMV 35S) and the neomycin phosphotransferase II (NPT II) gene in feral papaya plants, which were found frequently growing outside of cultivated papaya fields on Hainan Island. In total, 123 feral papayas, comprising 62 (50.4%) GM plants and 61 (49.6%) non-GM ones, were sampled. Among them, 23 (18.7%) were positive for PRSV, 49 (39.8%) were positive for PLDMV, including 5 plants co-infected by PRSV and PLDMV, and 56 (45.5%) plants were free of either virus. In traditional papaya growing regions, we detected fewer PRSV-infected plants (2 in 33, 6%) than in other regions (21 in 90, 23%). But overall, whether transgenic or not made no significance in PRSV incidence (P=0.230), with 9 PRSV-infected plants among 62 GM papayas and 14 among 61 non-GM papayas. Phylogenetic and genetic differentiation analysis showed a clear correlation between PRSV and PLDMV populations and their geographical origins. Negative selection was estimated for the selected gene regions of both viruses. Notably, PLDMV has deviated from neutral evolution and experienced population expansion, exhibiting increased genetic diversity and is becoming the predominant threat to papaya in Hainan.

How a Robust Community Clinical Practice Arm Can Support an Academic Health System’s Tripartite Mission

Natural tension exists between the community clinical practice arm and the academic clinical practice arm within a large academic health system (AHS). Disparate salary structures, overlapping geography, competition for patients, and inequitable application of standards and resources can all lead to suboptimal system performance, as each clinical practice works to maximize individual outcomes. These tensions can lead to unnecessary duplication of resources and wasting time and energy focusing on internal politics and competition rather than on addressing external competitive threats, such as the influence of venture capital, virtual services, and retail entrants into the clinical space. At the same time, the health care landscape continues to shift, as physician ownership of practices has fallen below 50%, creating both challenges and opportunities for health systems. This article describes how, over the last 15 years, UNC Health has built a robust community practice arm called UNC Physicians Network (UNCPN) alongside the academic department structure that fully supports UNC Health’s tripartite mission. The authors describe how a community arm within an AHS can expand its clinical footprint and harmonize research and teaching efforts to support the AHS mission in a community setting. To accomplish this harmonization, UNCPN identified three high-priority focus areas for intentional investment in collaboration between the community and academic arms: (1) partnering to increase community-based research; (2) growing internal capacity for learners; and (3) scaling care delivery quality and population health initiatives across a wide geography. These intentional efforts have allowed UNC Health to improve the performance of all AHS missions: research, education, and population-based clinical care. Specifically, the number of community clinics that were actively participating in research more than doubled, from 23 practices in 2019 to 49 in 2023. In association with the UNC Schools of Medicine and Nursing, for the last few years, approximately 65–70 preceptors have been committing as many as 23,000 hours to teaching about 95 students each academic year. In addition, during that same period, the percentage of School of Medicine student learners precepted nearly doubled in UNCPN adult clinics (Family Medicine and Internal Medicine) and increased by 50% in UNCPN pediatric clinics. As the number of UNCPN clinicians increased from 44 in 2010 to 697 in 2024, the number of primary care–empaneled patients grew from 200,000 in 2019 to more than 350,000 in 2024, with currently more than 540,000 patients in total, inclusive of primary and specialty care, which has allowed scaling of high-quality care, leading to top-tier performance in value-based contracts.

Contestation over a Profession's Memory: The UK Pharmacy Profession, 1880–1905

AbstractWe draw on the historical case of the UK pharmacy industry from 1880–1905 to examine how, in the face of a competitive threat to their survival, lower status professionals seek to reinvigorate the memory of their role in providing community service in the public interest. Derived from this, our study reveals how mnemonic work has a nuanced nature in professionalized settings. First, lower status actors enact certain types of mnemonic work because they need to maintain professional purity. Second, to maintain professional purity, lower status professionals also need to carefully sequence their mnemonic work and pay particular attention to the social context within which they are seeking to manipulate collective memory. Our study also shows how, within such a sequencing, for lower status professionals to successfully enact mnemonic work, they need to collectively mobilize their ranks and may engage in entryism to professional bodies dominated by their higher status peers.

A vertical index of direct competition in international trade: The case of CHINDIA and CARICOM

This paper assesses the genealogy of competitive indices in international trade and theoretically develops a measure of export threat which estimates direct competition in vertical market segments. We identify the assumption of homogeneity in these export threat measures as a weakness that undermines accuracy. Hence, we develop a new measure of export threat, the direct intra-market threat (DIMT), which incorporates relative vertical and market share changes over time to accurately estimate a country’s direct threat to other exporters in a third market. We argue that the market segmentation method applied in complement to the DIMT estimate provides an all-encompassing methodology in the estimation of export threat, which we argue is superior to the Dynamic Index of Competitive Threat (DICT) and Direct Threat methodologies. The paper uses the case of China and India (CHINDIA) and the Caribbean Community (CARICOM) to assess the empirical estimates of the DIMT relative to DICT and Direct Threat over the period 2000–2021. Our study is motivated by a research gap in the estimation of the competitive threat posed by a large, diversified exporter on Small Island Developing States (SIDS).

Combating lookalike product through adapting advertising appeals to consumer value: Strategic implications to brand imitation management

Abstract“Lookalike” products, including counterfeits and copycats, are increasingly common in today's global marketplace. Four lab experiments were conducted involving 653 participants, and data were analyzed through SPSS 26. Based on social representation (SR) theory and self‐construal theory, this research examines how advertising for original brands impacts purchase intent for counterfeits and copycats differently. The results suggest that ads for the original product using value‐expressive (vs. utilitarian) appeals result in lower intent to purchase copycat versions. However, ads for the original product using utilitarian (vs. value‐expressive) appeals lead to lower purchase intent for counterfeit versions. The results also show that consumer need fulfillment mediates the interactive effect between ad appeal type and product type. The current research provides useful insights for marketers or retailers grappling with ongoing competitive threats posed by lookalike products and underscores the strategic utilization of various advertising tactics to reduce the demand for copycats and counterfeits.

SOYBEAN AND WASTE COOKING OIL BASED FEEDSTOCKS AS A SUSTAINABLE BIOFUEL

Fuel in transportation is necessary and gas release from transportation activity raises concern of pollution. Sustainable fuels sources are from biomass can convert to the alternative to the bioenergy fuel. It is actively investigated with concern in the environmental effects if using conventional fuels from reservoir of fossil fuels. Hence, to counter these consequences, Sustainable Fuels (SF) is investigated as it is considered a renewable source of fuel. Thus, this study aims to establish an experiment to determine the suitability of biomass fuel by using soybean and waste cooking oil feedstocks. An experiment is set up to produce biomass fuel by using feedstock from different biomass particularly from soybean oil, a first-generation edible feedstock and waste cooking oil, a second-generation nonedible feedstock. The method chosen to produce biomass fuel is transesterification. The experiment will test the effects of a catalyst, namely solid Potassium Hydroxide, KOH, with three levels of concentration 0.75%, 1%, and 1.5% w/w KOH. Once the biomass fuel is produced it will undergo a series of tests to study the effect of parameters such as density, kinematic viscosity, caloric value, acid value and Fatty Acid Methyl Ester (FAME). The results show that using the feedstock 0.75 w/w% of KOH, the yield of biomass fuel is the most for both feedstocks. It is noted that soybean oil yields slightly greater feedstock than waste cooking oil. The density for both feedstock is very similar at 0.87-0.88 g/cm3. The acid value of biomass fuel produced from waste cooking oil is much higher than soybean oil at 0.28 but still under the acceptance range of 0.5. The concentration of catalyst used is a major factor in the yield of biomass fuel. It is also noted that the first-generation edible feedstock of soybean oil produces greater quality of biomass fuel. Nevertheless, first-generation feedstock still poses the food competition threat in comparison to second-generation feedstock. Therefore, establishment of the second-generation feedstock from waste cooking oil produces biomass fuel that is close to the quality of soybean oil, it is a more preferred feedstock compared to soybean oil.

The battle between activist hedge funds and labor unions

Activist hedge funds are more likely to target unionized firms. When they do, the short-term stock performance is higher, especially when the hedge funds’ targeting strategy is hostile. Employees and labor organizations at target firms tend to oppose activist hedge funds. Firms are more likely to unionize after being targeted by hedge funds, and employee satisfaction deteriorates at target firms. Moreover, unionized firms are more likely to strike after being targeted, and those strikes in opposition to hedge fund intervention are more severe and more detrimental to the firms. This paper further explores potential costs and harmful consequences to the firm value due to the tension between activist hedge funds and labor unions. After being targeted, unionized firms tend to have lower profitability, weakened corporate governance, exposure to a higher degree of competitive and product market threats, and a higher crash risk in stock prices.

The relation between corporate social responsibility and profit shifting of multinational enterprises

AbstractWe examine the relation between corporate social responsibility [CSR] and international profit shifting. We find consistent evidence that CSR is adversely related to profit shifting within European and US multinational firms. Additional results document that less profit shifting occurs in multinational firms that show high performance in the social or corporate governance dimensions. For US multinational firms, we find that the CSR performance is negatively related to profit shifting, particularly if a multinational firm faces fewer reputational concerns or competitive threats. Our findings point to a corporate culture in which, for international tax planning through profit shifting, CSR and tax payments complement each other.

Could Lontra longicaudis be considered a flagship species of the southern Yucatan Peninsula? Perspectives on its distribution, ecology, and conservation

There are historical reports of the Neotropical otter (Lontra longicaudis) in water bodies of the Yucatan Peninsula, and some efforts have been made to understand villagers’ perceptions of this threatened species. However, these studies vary in terms of season and location, and the data are limited and outdated. To help fill these gaps, our objective was to determine the current local knowledge on the conservation status of this species in the southern Yucatan Peninsula, Mexico, and the northeastern part of Petén, Guatemala. In 2021 and 2022, we conducted 90 semi-structured interviews with users of local water bodies in Mexico, including Río Hondo (n = 52), Laguna Bacalar (n = 17), and Laguna Guerrero (n = 6), and two natural protected areas (n = 15) in Petén, Guatemala. We tested whether associations existed between the characteristics of the interviewees (e.g., schooling level and activity in the water body) and their responses. We obtained information on 122 otter sightings, most of which involved single individuals (80 %). We found associations among the schooling level (e.g., elementary, high school), the activities of the interviewees (e.g., fishing, tourism services, technical activities), the water bodies and the perceived threats and values given to the otter. Our study provides updated information on the local perception of the species in a transboundary region and suggests that this species does not pose a competitive threat to local human fishing interests. Therefore, this species could be considered a flagship species for promoting regional conservation awareness in unprotected areas.

Activity, movement and habitat‐use patterns of a critically endangered endemic Australian freshwater crayfish

AbstractEstablishing the activity, movement and habitat‐use patterns of endangered species is fundamental in designing effective conservation plans. In Australia, the critically endangered freshwater crayfish, Euastacus dharawalus, is facing considerable risk of extinction due to numerous stressors, including the proliferation of the invasive Cherax destructor throughout their range. However, little is known about the fine‐scale spatial ecology of E. dharawalus and if this overlaps with C. destructor. Here, we aimed to establish the activity, movement and habitat‐use patterns of E. dharawalus as well as conduct a preliminary assessment into the overlap of their spatial ecology with that of C. destructor. In 2020, 15 E. dharawalus and six C. destructor were radio tracked at a site along Wildes Meadow Creek in the Southern Highlands region of New South Wales, Australia. Additionally, in 2021, 12 more E. dharawalus were tracked at this site over the same period. Euastacus dharawalus exhibited high site fidelity, small home ranges and diurnal activity patterns. Both E. dharawalus and C. destructor indicated significant preference for bank habitat, indicating potential for individual competitive interactions. We also report a significant reduction in the movement and activity of E. dharawalus from 2020 to 2021, possibly in response to population control of C. destructor or environmental variation across the 2 years. Our results indicate that the preservation or restoration of bank habitat will be critical to the conservation of E. dharawalus. Further, due to the extent of habitat‐use overlap between E. dharawalus and C. destructor, we conclude that C. destructor represents a substantial competitive threat to E. dharawalus, and therefore, C. destructor population control efforts should continue within the range of E. dharawalus.

WARALABA SEBAGAI PELUANG BARU DALAM DUNIA WIRAUSAHA

Franchising is a new choice in the development of the business world amid the development of industry 5.0. Franchising is developed a business system in which a brand owner or company (franchisor) gives the right to another party (franchisee) to sell products or services using a trademark, operational system, and support that has been proven successful This research uses a quantitative approach with data collection using literature studies. researchers explore various available sources of information, such as journal articles, textbooks, and other related documents. Data analysis was carried out by data reduction, data presentation and conclusion. Presentation of the analysed data is done in a descriptive narrative that is adjusted to the level of the researcher's ability. The results of the study show that franchising is currently an option for prospective entrepreneurs. Franchising as an entrepreneurial business model offers advantages such as support from the franchisor, access to a recognised brand, and flexibility, but its success depends on a SWOT analysis that includes brand strength, franchisor support, expansion opportunities, and competitive threats. Factors such as brand quality, franchisor support, efficient management, innovation and the role of government regulation also influence the success of franchising, with complex social, economic and environmental impacts, but with attention to all these aspects, franchising can be an engine of inclusive and sustainable growth in Indonesia.

Revolutionizing Banking: The Path to an AI-driven Future with a Special Reference to Union Bank

Banking stands at a transformative crossroads, propelled by technological disruption, shifting consumer dynamics, and the catalytic impact of the COVID-19 pandemic. This research charts the course for a new era in banking business models, introducing a paradigm shift known as 'the AI bank of the future.' Grounded in the advancement of artificial intelligence (AI) technologies, this model offers traditional banks the potential to elevate revenue while reducing costs, ushering in innovative customer engagement approaches. In response to multifaceted challenges, including market valuations, competitive threats from neobanks, and changing customer expectations, traditional banks are urged to become 'AI-first' in strategy and operations. This involves leveraging economies of scale through efficient AI deployment to enhance customer engagement with distinctive experiences and superior value propositions. The research meticulously explores the building blocks of an AI bank, delving into four critical layers: engagement, AI-powered decision-making, core technology, and data infrastructure, and a platform-based operating model. Through a series of articles, the study examines trends, challenges, and requirements for each layer, offering an end-to-end view of the capabilities essential for the AI bank of the future. The articles cover topics ranging from the challenges leading banks to adopt an AI-first approach, a day in the life of a consumer transacting with an AI bank, reimagining customer engagement, to AI-powered decision-making and the modernization of core technology. The final piece discusses the necessity of a platform operating model, emphasizing the deployment of AI and analytics capabilities at scale through cross-functional business-technology platforms. To embark on this transformative journey, bank leaders are advised to formulate strategic goals for the AI-enabled digital age, establish an AI-first vision, and strategically modernize enterprise technology. The research underscores the importance of assessing emerging technologies, prioritizing initiatives aligned with customer needs, and considering partnerships for non-differentiating capabilities while focusing on in-house development for distinct competitive advantages. In conclusion, building the AI bank of the future is envisioned as a pathway to innovation, competitive prowess against digital natives, and sustainable increases in profits and valuations. The research serves as a guiding compass, assisting banks in establishing their vision and crafting a strategic roadmap for this transformative journey into the AI-driven future of banking.

Inward FDI and local firms' political connections in emerging markets: Evidence from China

AbstractResearch SummaryResearch on the spillover effects of foreign direct investment (FDI) into emerging markets has primarily focused on local firms' productivity or innovation outcomes while overlooking their nonmarket strategies. Based on the resource dependence theory, we propose that inward FDI has a U‐shaped impact on local firms' political connections. This is because when FDI is at a low to medium level, its spillover benefits substitute for local firms' dependence on government resources. As FDI further increases, its competitive threats outweigh spillover benefits, driving local firms to a greater dependence on the government to neutralize the threats. This relationship is contingent on external and internal factors altering resource similarity between FDI and local government. Our analyses of Chinese listed firms support our predictions.Managerial SummaryThis study delves into how firms in emerging markets respond to inward FDI, particularly focusing on the role of political connections as a nonmarket strategy. Our findings offer valuable insights for both local firms and governments, providing a holistic view of the opportunities and challenges associated with inward FDI. We advise local firms to adopt a balanced approach by integrating both market and nonmarket strategies to maximize benefits, as relying solely on political connections may not be the most effective way to address the challenges posed by inward FDI. Additionally, our research emphasizes the importance of evaluating the resources provided by inward FDI against those provided by local governments, as the similarity of these resources alters the role of inward FDI as perceived by local firms.

Exercising Market Power Without Using Prices: Service Time in Online Grocery

This paper studies how online grocers use service time to respond to local competition and demand conditions when prices are uniformly set at the national level. Using comprehensive data collected twice a week over three years from 172 Israeli local markets, we show that an online grocer sets identical prices in all markets. By contrast, service time is shorter in more competitive markets and on low-demand days. Next, we exploit regional and temporal variation in entry decisions to examine how the incumbent adjusts its service time when new online grocers enter the market. The incumbent’s service time falls significantly on low-demand days and in monopolistic markets. This decrease begins shortly before entry and is greater when the entrant poses a larger competitive threat. On high-demand days and in competitive markets we do not find a significant change in service time in the months surrounding entry. Our findings suggest that firms use service time to exercise their local market power when prices are unresponsive and that operational considerations affect the extent to which they respond. This paper was accepted by Joshua Gans, business strategy. Funding: Financial support by Eli Hurvitz Institute of Strategic Management, The Henry Crown Institute of Business Research in Israel, The Maurice Falk Institute for Economic Research in Israel Ltd., Coller Foundation, and the Israeli Science Foundation [Grant 568/17] is gratefully acknowledged. Supplemental Material: The online appendices and data files are available at https://doi.org/10.1287/mnsc.2022.01820 .