Retaliation

    Cards (5)

    • Companies seeking to enter an industry also anticipate the reactions of firms in the industry.
    • An expectation of swift and vigorous competitive responses reduces the likelihood of entry.
    • Vigorous retaliation can be expected when the existing firm has a major stake in the industry, when it has substantial resources, and when industry growth is slow or constrained.
    • Locating market niches not being served by incumbents allows the new entrant to avoid entry barriers.
    • Small entrepreneurial firms are generally best suited for identifying and serving neglected market segments.
    See similar decks