Neutralizing the
threat of rivals
Chapter four discusses evaluating opportunities. As I stated
last week, Pinnacle purchased US Bancorp and the purchase
allowed Pinnacle to enter three new markets. This was a smart move when you
consider that an alternative strategy could have been for Pinnacle to enter the
markets by opening its own branches. By purchasing US Bancorp, Pinnacle removed
one if its rivals. The move also allowed Pinnacle to better compete with other rival
banks in the market by entering with an established customer base.
Pinnacle also used the strategy of preemption
of valuable assets. Pinnacle had an aggressive strategy of stealing top
employees from competitors. Employees are a company’s most value asset.
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