Question

Many firm choose to enter the market early to get a number of advantages including the opportunity to do monopoly of the business. What are some benefits of entering market early? There are opportunities to enter the market late. Why a firm may choose to enter into a market late?

Answer 1

Yes, usually many firms choose to enter the market early because there is more number of advantages and opportunities to grab.

For example, if we take any big company right now in the world. We will find most of the large firms are entered the market early than any other. This became the advantage for them to stand as a monopoly in their business field.

• Some of the key benefits of entering the market early are grabbing the market share is the biggest advantage.
• If the service or product is good in quality then all the customers will turn into a client.
• Another benefit is no competition as no other firm started providing this service. Taking patent rights will give assurance to stay and sell their product only by them and not by others until some time period.
• Building the brand and marketing their product will be easier for them as they are only firm in that field. That firm also can expand its logistics and delivery chain.

These are some of the benefits of starting early.

Of course, there are some opportunities to enter the market late too.

Here are the benefits for those firms who starts late:

• Firms entering late can understand the market very well than previous firms.
• As this is already tested market the chance of committing mistake will be lesser.
• Risk is also lower as they know that their product or service worked or not in the market.
• They can grab customers from early started companies by attracting them with providing great offers
• More importantly that late started firm can bring those services with new changes and also with some cool updates and new features innovatively.

These are the benefits for a form starting late.