Business Strategy - Barkley Enterprises Versus Sharpe in Market competition - Essay Example

When communicating with the barley company comments on our pricing policies, levels of production, methods of marketing, inventories, the measure taken to develop products, sales situations, and goals, nonpublic market surveys, and other archives or confidential information (Hill, & Jones, 2009). 

            Sharpe should ensure economic knowledge about Barkley. However, Sharpe seeks to maintain business ethics in our communication. Sharp seeks to maintain a steady relationship with Barley in a way that they will not exchange their trade secrets, the lists of customers that Sharpe is targeting, and information about the resources available at Sharpe, technological developments, or operations. Sharpe should also be careful to avoid hiring staff that worked with Barkley. Sharpe should also avoid dealing with suppliers that have supplied for Barkley to avoid leaking confidential information; Sharpe will not hire or buy staff from Barkley to extract information about the Barkley Company. Sharply plans to remove barriers to entry in the market or directly alleviate monopoly rents. The company can also venture into facilitating mergers and acquisitions (Baye, 2010). 

            Sharpe also seeks to set up strategies that will enable the company to enjoy economies of scale, economies of scope, and cost complementarities of price and output this way the company enjoys low costs and increases profitability. The company is planning to implement strategies that encourage innovation to ensure high profitability and low costs (Hill, & Jones, 2009). 

Legal requirements concerning the increase of prices to drag competitors out of the market

Competition laws seek to grow with mixed laws such as trademarks, copyrights, patents, industrial design rights, and in some instances trade secrets. Companies that wish to increasingly raise prices need to familiarize themselves with the laws that govern such activities lest their contracts be terminated. Contrary a growing notion feels that the promotion of novelty through adhering to the ‘intellectual property rights’ encourages competitiveness, whilst the consequences may vary. It is still not clear if one can obtain a monopoly through the buildup of intellectual property entitlements. At this juncture, the judgment needs to decide between allowing intellectual property rights and promoting competitiveness. Anti rusts laws should be clear on the requirement needed for intellectual property. There lies a question as to whether the intellectual practice should be revoked or denied in case antitrust laws are abandoned (Hill, & Jones, 2009). 

The results of anti-viable effects are because of; Intellectual properties designed to violate antitrust laws. When intellectual property gets accepted into the industry standards, the issues of completion arise.   There exists the problem of cross-licensing of the intellectual property where the trader‘s license allows him/her to trade in many markets he/she pleases. There exist cases where ‘intellectual property right gets bundled into long-term business dealings or agreements to increase the market's exclusiveness of intellectual property beyond their required time frame. Trade secrets should remain secrets if the trader seeks to dominate the market and maximize profits (Baye, 2010