The purpose of this research paper is to provide an overview of territorial restrictions that are impacting the movement of products and services within the United States. Specifically, antitrust and other regulations are discussed, with an emphasis on Supreme Court decisions. Furthermore, an analysis is provided of these restrictions upon manufacturers, retailers, or the ultimate consumer. Finally, directions are given as to what ought to occur and where these restrictions should lead.
According to Kotler and Singh (1981), "successful marketing ... requires devising competition-centered strategies, not just customer-centered and distribution-centered strategies" (p. 30). Faced with declining market growth, resource scarcities, and the proliferation of new technologies, companies are increasingly pursuing profit gains at the expense of their rivals through market share rather than market growth.
Strategies directed toward competitors can involve different objectives. On the one hand, a company may employ competition-centered strategies to create a state of peace between rivals (Kotler & Singh, 1981). Such an approach involves a business that entrenches itself in some part of the market in which it has a natural and comparative advantage. This advantage discourages aggressive behavior by rivals and favors peaceful coexistence. Rivalry that does occur is generally the result of one firm poorly servicing its market niche, a new competitor bringing new advantages to the market, or changes occurring in the market environment. Strategies of this kind are welfare-enhancing, since they facilitate efficient competition.
On the other hand, competitive strategies may also have the objective of weakening or even destroying a competitor (i.e. cutthroat competition). These strategies can be injurious to competition and may potentially reduce competitor welfare. Such strategies are commonly referred to as predation or predator...