4min chapter

Acquired cover image

The Top 10 Acquisitions of All-Time

Acquired

CHAPTER

Counterpositioning Is Your Favorite Power

Counterpositioning occurs if a company comes up with a new business model and challenges, often a powerful incumbent with it. For the incumbent to mimic this model, they would incur so much immediate financial damage that they just say, i can't go there. It's very often true, isay, almost always true, that there's a cognitive bias involved in counterpositioning. And then there are also agency issues which means that the person who controls the business may not be an alined with the long term interest of the business.

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