Cross-Market Subsidization to Wage a Strategic Offensive
What are the uses of the Cross-Market Subsidization to Wage a Strategic Offensive?
Expert
Using the Cross-Market Subsidization to Wage a Strategic Offensive:
1. Profit sanctuaries are important competitive assets, providing the financial power to support strategic offensives in chosen country markets and help a company’s race for global market leadership.
2. A global company has the flexibility of low-balling its costs in the domestic company’s grabbing market and home market share at the company’s cost, subsidizing razor-thin margins or even wounded with the well profits earned in its profit sanctuaries – a practice called cross-market subsidization.
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