Hardball: Are You Playing to Play or Playing to Win?

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Entice Your Competitor into Retreat

In certain circumstances, it is possible to entice your competitor into retreat from competing in a business area that is important and highly profitable for you. This can be done by taking actions that are likely to lure your competitor into a different business area where you also may both compete, but that is less important and profitable for you. One of the best ways to entice a competitor to retreat from your main area of interest into another area is to leverage your superior knowledge of the costs of your business activities. If you can lure your competitor to compete in an area that it believes (because of its inferior knowledge of its costs) is highly profitable for it, but, in fact, is not, you ...