Strategic Deterrence - Essay Example

Its implications on the multi markets are not only largely understood but are being analyzed to overcome the disadvantages due to the market encroachment. The market untouched by this phenomenon is the monopoly market which stands high on sales and profit yet not letting anyone step into its market. This is the only market, which does not need to negotiate with fellow competitors in the multi-market segments. Strategic deterrence some times tends to be very fair but in actual scenario it just an act of deceiving the fellow competitor thereby amassing a large customer base.

Once the customer base is achieved it is very hard for the rival firm to get to the competing level. He will always be a step behind the firm with a large customer base. Until recently Strategic deterrence use to get through in smaller markets but with the advent of globalization Strategic deterrence tends to be spreading even to the bigger markets with global players taking a step back in order not to have losses clinch the image of the company. Though its implications are high mutual deterrence always tries to curb the black-market under the observation of all the competitors.

Video News Releases (VNRs) is one way to deviate the customers and stakeholders from the actual truth. It is used for promoting products but also fake VNRs can cause much more damage. Praising the products without using them and advertising the product as if it is the last that left on earth for the consumer to choose. These things can deter the good relations ship between the company and its stakeholders and customers.