More on Counterfeiting

14 December 2011 at 5:18 pm Leave a comment

| Peter Klein |

We asked in an earlier post if counterfeiting is good for business. Fakes may compete with the real thing, but having them around may also constitute free advertising that boosts demand for the original. Rubik’s Cube distributor Seven Towns Ltd. faces this conundrum, as a WSJ front-pager demonstrates:

One reason . . . a new generation of Rubik’s fanatics can solve the notoriously difficult puzzle in record time: They don’t use Rubik’s Cubes at all, instead substituting souped-up Chinese knockoffs engineered for speed.

The spread of these black-market cubes challenges the London-based company with a marketing brain teaser. Should Seven Towns crack down on the pirated toys? Or piggyback on the phenomenon of competitive speed-cubing?

I for one am happy to have all those cheap knockoffs of my articles and books flooding Chinese markets. Not everyone can afford a Klein® original, after all.

Entry filed under: - Klein -, Strategic Management.

Theory Construction Bleg Too Freaky

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Authors

Nicolai J. Foss | home | posts
Peter G. Klein | home | posts
Richard Langlois | home | posts
Lasse B. Lien | home | posts

Guests

Former Guests | posts

Networking

Recent Posts

Categories

Feeds

Our Recent Books

Nicolai J. Foss and Peter G. Klein, Organizing Entrepreneurial Judgment: A New Approach to the Firm (Cambridge University Press, 2012).
Peter G. Klein and Micheal E. Sykuta, eds., The Elgar Companion to Transaction Cost Economics (Edward Elgar, 2010).
Peter G. Klein, The Capitalist and the Entrepreneur: Essays on Organizations and Markets (Mises Institute, 2010).
Richard N. Langlois, The Dynamics of Industrial Capitalism: Schumpeter, Chandler, and the New Economy (Routledge, 2007).
Nicolai J. Foss, Strategy, Economic Organization, and the Knowledge Economy: The Coordination of Firms and Resources (Oxford University Press, 2005).
Raghu Garud, Arun Kumaraswamy, and Richard N. Langlois, eds., Managing in the Modular Age: Architectures, Networks and Organizations (Blackwell, 2003).
Nicolai J. Foss and Peter G. Klein, eds., Entrepreneurship and the Firm: Austrian Perspectives on Economic Organization (Elgar, 2002).
Nicolai J. Foss and Volker Mahnke, eds., Competence, Governance, and Entrepreneurship: Advances in Economic Strategy Research (Oxford, 2000).
Nicolai J. Foss and Paul L. Robertson, eds., Resources, Technology, and Strategy: Explorations in the Resource-based Perspective (Routledge, 2000).