althought rockstar is set up an organization independent of

althought rockstar is set up an organization independent of its founders, what are the possible reactions if the firm aggressively pursures and important customer or supplier of one it founder companines?how might the customer or supplier react? how might the founder react?

Solution

Rockstar is a company that makes no products and whose machine is to sue the manufacturers who fringe on its patents can become very aggressive in filing the patent lawsuits . If it aggressively pursures a supplier of its founder company than they react as, Ignoring the infringement out of fear that your larger competitor will file numerous countersuits, threaten to file suit, but try to negotiate an out-of-court settlement for an amount of money that you feel your larger competitor would readily pay or point out the infringe- ment and negotiate aggressively for a cross-licensing agreement with the competitor, which has numerous patents you had considered licensing.

The reactions of the founder is, to adopt offensive strategies. Successful use of offensive strategies can help a firm improve its competitive position, gain market share, and increase profits .They often defend themselves by embracing and improving the intruder\'s technology, attacking the upstart’s reputation as a product reliable source of supply, and hiring some of the best people of the attacking firm. Fighting brands are introduced by organizations to fight a competitor’s brand that threatens one of their major brands. Competing brands are typically lower priced versions of the firm’s premium brands that claim equal quality at a much lower price. Introducing fighting brands can be an appealing strategy because they help fight off a price-cutting brand that is threatening the core brand of the firm while preserving its premium image and profit margins. Many companies compete with other companies in more than one market. The degree of multimarket contact between two firms affects the intensity of rivalry and the extent of retaliation amongst these firms. Competitors interacting in multiple markets are less motivated to compete aggressively because of the possibility of retaliation across various markets.By this the founder strengthen the market when a firm pursures its company.