Competition protection and Philip Kotler’s strategic recommendations

Fornalczyk, Anna (2011): Competition protection and Philip Kotler’s strategic recommendations. Published in: Yearbook of Antitrust and Regulatory Studies , Vol. Vol. 2, (2011): pp. 11-23.

Abstract

P. Kotler’s recommendations of modern marketing tell managers how to achieve and maintain a dominant market position. Some of the recommended activities may, however, infringe European and Polish competition law. Objections are not raised by market success achieved as a result of high product quality, good customer care, high market shares, continuous product improvements, new product release, entry onto fast growing markets, and exceeding customer expectations. Competition law problems may appear when a given company, having reached a dominant position, starts abusing it by subjugating the market and dictating business conditions to other market players (suppliers, customers, consumers). This article focuses on predatory pricing, strategic alliances, mergers and acquisitions and State aid issues that may arise from the implementation of Kotler’s recommendations. For market success not to transform into a competition law problem, it is worth remembering the limitations imposed by competition law on the actions of dominant companies. The paper outlines these limitations.

• Item Type: MPRA Paper
• Language: English
• Keywords: competition; dominant market position; predatory pricing; strategic alliances; preventive control of mergers and acquisitions; exploitive or anti-competitive practices; State aid; leniency procedure; Kotler’s theory of modern marketing
• Subjects: K - Law and Economics > K2 - Regulation and Business Law > K21 - Antitrust Law

References

Allaire Y., Firsirotu M.E., Myślenie strategiczne [Strategic Thinking], Warszawa 2000.

Areeda P.E., Turner D.F., ‘Predatory Pricing and Related Practices under Section 2 of the Sherman Act’ (1975) 88 Harvard Law Review.

Bellamy & Child, Common Market Law of Competition. Fourth edition, Sweet & Maxwell, London 1993.

Bishop S., Walker J.M., The Economics of EC Competition Law: Concepts, Application and Measurement, London, Sweet&Maxwell, 2002, 2nd edition.

Brandenburger A.M., Nalebuff B.J., Co-opetition, Currency Doubleday, 1998.

Drucker P.F., Myśli przewodnie Druckera [Drucker’s the Main Ideas], Warszawa 2002.

Fornalczyk A., Biznes a ochrona konkurencji [Business and Competition Protection], Kraków 2007.

Fornalczyk A., ‘Strategia dominacji rynkowej a ochrona konkurencji na wspólnym rynku Unii Europejskiej (na przykładzie organizowania dystrybucji)’ [‘Strategies of market dominance and competition protection on Common Market (on an example of organizing a distribution)’] [in:] J. W. Wiktor (ed.), Euromarketing. Koncepcje, strategie, metody [Euromarketing. Concepts, Strategies, Methods], Kraków 1999.

Gierszewska G., Wawrzyniak B., Globalizacja. Wyzwania dla zarządzania strategicznego [Globalisation. Strategic Management Challenges], Warszawa 2001.

Gronowski S., Ustawa antymonopolowa. Komentarz [Anti-monopoly Law. Commentary], Warszawa 1999.

Hovencamp H., Federal Antitrust Policy, West Publishing Co., 1994.

Kotler P., Kotler o marketingu. Jak tworzyć, zdobywać i dominować na rynkach [Kotler on Marketing: How to Create, Win, and Dominate Markets] Gliwice 2006.

Kotler P., Marketing. Analiza, planowanie, wdrażanie i kontrola [Marketing Management. Analysis, Planning, Implementation, and Control], Warszawa 1994.

Obłój K., Tworzywo skutecznych strategii [Substance of Effective Strategies], Warszawa 2002.

Romanowska M., Alianse strategiczne przedsiębiorstw [Strategic Alliances of Companies], Warszawa 1997. Romanowska M., Planowanie strategiczne w przedsiębiorstwie [Strategic Plannig in a Company], Warszawa 2004.Stonehouse G., Hamill J., Campbell D., Purdi T., Globalizacja. Strategia i zarządzanie [Globalisetion. Strategy and Management], Warszawa 2001.

Skoczny T., ‘Ochrona konkurencji a prokonkurencyjna regulacja sektorowa’ [‘Competition Protection and Procompetitive Sector-Specific Regulation’] (2004) 3 Problemy Zarządzania.

Whish R., Competition Law, Third edition, Butterworths, London, Edinburgh 1993.

Williamson O.E., Markets and Hierarchies. Analysis and Antitrust Implications, New York, London 1983.