Right Hand Versus Left Hand: Difference between revisions

* It is generally a bad idea to be in competition with yourself, resources are needed to maintain an edge in an aggressive market. Those resources have a hard enough time fighting against genuine competitors and maintaining competition against yourself doubles those resources. The only way to make even is by dominating a given market. Say there are three restaurants on a given intersection, all other things being equal those restaurants will acquire 33 percent of that market. If the parent company of one business was to open another branch in the open spot on the intersection it would reduce the market share of the other businesses from 33 percent to 25 percent, including the one they already own. The big difference is that the parent company now controls 50 percent of that market when before they only controlled 33 percent with the one business there. It ends up doing well for the parent company but it hurts the sub-franchise.

* A recent government regulation on the US banking industry is designed to prevent this. The Loss Mitigation department (the guys trying to help you keep your house) would often be in a race with the foreclosure department to see who could get their paperwork through first.

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