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| a. In considering these possible tactics, why should managers at Procter & Gamble be concerned about their costs? b. Why should managers be concerned with the costs to an entrant? c. By the 1990s Procter & Gamble had to compete with high-quality, private-label diapers (as well as with Kimberly- Clark, which successfully entered the market in the 1970s). In March 1993 its Pampers brand had about 30% of the market, and its Luvs brand had about 10%. The price of Luvs and Pampers exceeded that of discount brands by over 30%. Should Procter & Gamble have cut its prices? d. In 1993 Procter & Gamble sued Paragon Trade Brands, a private-label producer, alleging infringement of two patents. Are lawsuits of this kind part of the process of oligopolistic rivalry and struggle? |
