Quote:
Originally Posted by particra17
It makes no sense for PSA to operate SGC as a competing brand. The cost to hold that up destroys the value accretion.
|
Disagree. A two-brand monopoly should always be stronger than a single brand monopoly because it gives them more strategic flexibility. To protect their overall market share, Collectors Holdings should decide on a unique brand strategy for SGC (vintage, value, etc) - this will create a larger barrier of entry for competitors and effectively protects the PSA brand and market share. Letting SGC die a slow death creates opportunity for new/existing competitors to eat away at PSA's market share which is exactly what CGC is doing.
Ray Van