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

Benefits of entering market early are given below :

By entering market early, the firm gets a chance to build brand recognition and loyalty from customers.

Brand recognition is the biggest advantage a firm gets. It brings loyalty among existing customers as well as attract new customers too.

Apart from this, entering the market early allows the firm to obtain market share with minimal competition.

In addition, company gets more time and hence can gain experience and modify the value of their activities for best products and services.

Benefits of entering market late are given below :

Entering late in market allows a firm to learn from the mistakes done by other firms present already in the market.

Other than this, they get enough time to make strategies and hence get good advantages.

Also, they get enough knowledge about the market and product or service performances.

If you have any doubt regarding the answer then let me know in comment. If it helps, kindly give an upVote to this answer.