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Entering or Exiting a Market

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What is the role of timing in deciding to enter or exit a market? Firms decide to enter a market based on current and historical information, but time lags can change the economic environment. What are the risks a firm faces in deciding to enter or exit a market?

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Solution Summary

This solution provides an outline of timing strategies for entering a market. It includes a series of approaches that may allow a late comer to become competitive in a market.

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Remember - we here at Brain Mass cannot do the work for you. We can only point you in the right direction.

Here is a great piece: http://www.wright.edu/~tdung/entry.pdf

Let's deal with a few major points to hit:

1. Early entrance is almost always best. The basic argument is that there are serious advantages for early entry in terms of market share. There is little controversial about that.

2. "Pioneers" have to become "incumbent." that means they must enter early and then establish themselves for the long haul. That gives them an even bigger advantage.

3. Late comers need to have certain aspects of their product as "distinctive." This is ...

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