Essay On Strategic Interaction

Strategic interaction is a term that is broadly used to identify a process that seeks to involve several parties in achieving a common goal, relying heavily on effective communication to make progress in pursuing that goal.As strategic interaction is being related to the business world, this type of activity can prove to be very effective in a number of situations such as retail, business planning, managing and creating a marketing or effort in creating public relations, or even in general operation of a production facility.The examples of strategic interaction in business include price war between companies, wage bargaining. Bidding for UTMS or other licences.Therefore, One of the key elements in strategic interaction is it's ability to

They make sure to have a clear channel of communication between departments within the company structure, thereby reducing the scope of miscommunication between the departments. This strategic arrangement of communication channels proves to be an aid in increasing productivity while also keeping operational costs as low as possible. The main aim of this approach is to make sure each and every one is being involved in getting equipped with the information that is being needed to carry out one's responsibilities in the most efficient manner possible. Strategic interaction is not a static process, as it tends to change according to the circumstances which often dictate adapting current methods to suit new situations. This is the reason why, companies review their processes in order to maintain a healthy interaction within its structure as well as evaluating how a company officers interacts with investors, buyers, and other party which plays a vital role in the ongoing success of the

This is the situation which occurs when two or more firms in an industry tend to reduce or change their own prices so that they can stand out in the industry, in return helps them increase their market share and gain more profit,which is then followed by other competitive firms. Firms with fewer financial resources may even be put out of the business. Price fixing plays a major role in a price war. In some industry, state of oligopoly is quite apparent (i.e. only a few sellers operate), this results in forcing small business to walk out of the market. Price wars represent one of the most severe forms of competitive interplay in the market place, causing great losses. Bhattacharya, 1996 and Busse, 2000 have studied that companies suffer losses in terms of margins, consumer equity, and ability to innovate, fall victim to substitutes, and even face bankruptcy. Initially consumers may be benefited from lower prices, may develop unrealistic reference prices and suffer from lower quality products in the long term. Rao et al, 2000 have studied that the battleground for price wars extends far beyond the classic examples involving the airline and energy businesses as price wars are seen to break out in all kinds