Consider the following examples:

(a) A maker of ski boots and bindings designs a new ski boot to be used only with its own bindings, with increased safety properties.

(b) A clothing outlet sells only last season’s fashions at bargain basement prices.

(c) An optometrist installs an in-house facility to make glasses to fit a prescription while you wait.

In each case, discuss whether the firm is following a top dog, puppy dog, lean and hungry look or fat cat investment strategy. Is the strategic effect of the firm’s investment strategy likely to increase or soften price competition? Is the firm accommodating entry or deterring entry (or inducing other firms to exit)?