Notes on Strategic Entry Deterrence
نویسنده
چکیده
As a manager, you prefer that other firms not enter your markets. Sometimes you’re lucky and you’re protected by natural barriers to entry. Examples of these are legal protections on intellectual property (e.g., a patented product), government regulations limiting entry (e.g., restrictive zoning), and the amount of industry-specific capital investments needed to compete effectively. Many times, however, you don’t enjoy such protections. In these cases, the question is whether you can deter entry through strategic actions. These notes discuss what strategic actions you might take and the effect they’re likely to have. In particular, we’ll consider 6 methods:
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