Spar & La Mure, 2003 - General Rules

4 important questions on Spar & La Mure, 2003 - General Rules

When, according to the Spar & La Mure, 2003 article, does the probability of firms following resistance increase?

The more capital intensity and transaction costs, the more likely the firm is to choose the path of resistance.

When, according to the Spar & La Mure, 2003 article, does the probability of firms following capitulation increase?

The greater the importance of brand to a firm, the more susceptible its managers are to activist pressure and the more likely they are to capitulate.

What is the main calculus that should be asked when deciding what variable and thus firm strategy a company will likely choose?

When the costs of compliance are low or the benefits high, firms are more likely to concede.
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Transaction costs, brand impact and competitive positioning regarding capitulation (adopting first) are all variables that can be linked to profit maximisation, but not always can preemption also be linked to this, why?

No, not necessarily since it's not clear that there profits will be higher.

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