Strategic Deterrence Essay Example | Topics and Well Written Essays - 500 words

Strategic Deterrence - Essay Example This situation comes when firms start loosing customer base, profit on sales and the business tending to break-even point, which is generally referred as no profit and no loss point. This position comes when the situation is from a very long time. Though Strategic deterrence is mutually agreed concept is in deed an unwilling act on behalf of the companies involved. It ensures no loss concept but never promises profits out of the deterrence. Strategic deterrence may be a positive attitude but is accepted only by small or medium companies but not by large multi national companies. Its implications on the multi markets are not only largely understood but are but are being analyzed to overcome the disadvantages due to the market encroachment. The markets un touched by this phenomenon is the monopoly market which stands high on sales and profit yet not letting any one step into its market. This is the only market, which does not need to negotiate with the 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 there by amassing large customer base. Once customer base is achieved it is very hard for the rival firm to get to the competing level.