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Countries have differences in competition policies, which are cause for friction in international trade and investment. This paper discusses those issues and develops a model to try to explain the willingness of countries to participate in a cooperative competition policy. The model suggests that countries which are economically advanced, active in trade, and already involved in trade regimes are most likely to cooperate in competition policy.

In Paris, in 2015, 195 countries agreed to limit the emission of CO₂. The German Energiewende is an example of the types of regulatory changes that countries will need to enact to meet their Paris commitments. The Energiewende saw the German Government forcefully shift the energy base from non-renewable to renewable sources to reduce CO₂ emissions, and the effect of this was to reduce the market value of some German energy firms by as much as 70%. This paper aims to consider the strategic options available to energy incumbents facing the sort of regulatory challenges implied by the Paris agreement.

This paper is a literature review and a thought experiment, in which, 12 fields of strategy research are reviewed, and using the insights obtained from these fields, four strategic options are proposed for the energy incumbents, namely, “fight,” “flight,” “fit” and “follow.” Each strategy is introduced and evaluated, and, by looking at examples from other industries, the viability of that strategy for the energy industry is concluded.

Of the four strategies identified – that is, fight (lobbying), flight (internationalization or diversification), follow (imitation) or fit (adopt a core competencies perspective that re-imagines the firm) – it was concluded that only the last is feasible. The present review, and the application of the discussion to the energy industry, suggests that “fight” is viable only in the short term as a delaying strategy; “flight” is a value-destroying strategy, and, therefore not a real option for the energy industry; “follow” will lead the energy incumbents to lose their current positions of power; and only “fit” will allow the energy incumbents to remain viable in the long term.

All research has its limitations. The main limitation of this research is the fact that this study is a thought experiment based on a literature review. The suggested strategies are forward-looking, but are based on historical examples, and are intended to guide the energy incumbents, even when they are based on non-energy examples. The reader should view this paper in that light.

The practical implication of this research is that, of the 12 fields of strategy that it reviews, there is only one feasible strategy for the energy incumbents looking to survive the sorts of regulatory challenges implied by the Energiewende and the Paris agreement. The research suggests that many/most/all of the energy incumbents will, at first, choose a “fight” strategy, but in the long term only those that choose for a “fit” strategy will survive the sort of disruptions implied by these regulatory changes.

The social implications of this research are that many/most/all firms in the affected industry will go through a predictable process, of first resisting the change, before eventually supporting it; that “flight” is not a viable strategy; and that radical innovation rarely comes from incumbents. Policymakers should be aware of these facts when not only working with incumbents to develop the regulations necessary to meet the Paris climate commitments but also looking at the impacts of regulation and when trying to “pick winners.”

The paper reviews the existing literature, and the review is not new. The application to a specific industry and the advice gleaned from this for managers and policymakers is new and of high value.

The proposed merger between two massive retailing groups, Boots and the House of Fraser, has been referred to the Monopolies Commission. The Commission's decision will be important not only for the City but for retailers in general. They will want to know whether approval would mean other attempts to form new groupings; and of course they will also be somewhat apprehensive as to whether or not a new retail group with sales of £600m is likely to emerge. But the case also throws light on the way in which the Government is now conducting its competition policy.

SOME of the delicate components of airborne equipment have to withstand very high accelerations during certain phases of flight. There are also g‐operated devices which must react within a very brief interval when subjected to g above a certain value. The testing of such components during development presents a difficult problem because of the extremely short periods during which the required conditions obtain. A neat method of obtaining reliable answers to such problems has been devised by Wilkinson Sword Ltd., Southfield Road, London, W.4, in association with Graviner Manufacturing Co. Ltd. at their Colnbrook, Slough, Bucks, factory, where development of temperature‐ and acceleration‐sensitive components for airborne equipment is carried out.

From razor blades to iced tea, British‐owned companies have penetrated the fiercely competitive American market with a strategy of infiltration rather than outright invasion. One exception was Plessey who tried a near‐disastrous policy of acquisition. Now they favour joint ventures. Jack McCarthy reports from New York.

This article is an edited version of the presentation given by Ward Klein at the 2004 International Business Conference sponsored by the Boeing Institute of International Business at Saint Louis University’s John Cook School of Business. Over 300 guests listened to his comments and participated in a Q&A at the conclusion.

AND OVER TO YOU. On July 9, the first Hawker Siddcley Andover CC Mk.2 for service with The Queen's Flight was officially handed over to Wing Commander A. W. Ringer, A.F.C., R.A.F., Officer Commanding The Queen's Flight. Six CC Mk. 2sarc currently on order for the Royal Air Force, the first two for The Queen's Flight and the other four destined for special passenger‐carrying service with the R.A.F. His Royal Highness The Duke of Edinburgh recently took a conversion course on the Andover at R.A.F. Benson and an Andover will be used by The Duke for all flights during his forthcoming tours of Mexico and the Caribbean in October and November.

Mr Edward Bowyer, C.B.E., the Director and Chief Executive of S.B.A.C. for the past twenty years, will retire from the post at the end of June 1966, having reached the normal retiring age. For the remainder of the year he will continue as consultant to the Society.