Question

Entry into a market by a new competitor evokes a reaction. As a result, a competitive dynamic- action and response begins. Before responding to a competitor, firms must understand the competitive dynamics of the business in order to succeed with a growth opportunity. Suggest and critically discuss a model that helps managers to meet this objective Support your answer with examples. ( New Competitive Action , Threat Analysis : Market commonality+ Resource similarity , Motivation and Capability to Respond

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Answer 1

New market entry for any organisation is always a critical situation. It includes a deep-level study of the industry, economic and social conditions to consider the viability, method of action and government help to make it easier to do business. Market research needs to be conducted correctly to decide which business model will continue to succeed on the business if it is license, franchisee, direct operations, strategic partnership etc. Understanding of competition is very critical because what their mode of action, customer base, market share and pricing are necessary to prepare for a better business position to beat the market.

Analyzing the growth potential using the PESTEL model and the SWOT analysis is needed. It helps reduce the risk and strengthen itself by re-designing the plan and preventing the malfunctions. When a market is crowded with a certain product or the economic situation is not good it is extremely dangerous to launch operations in a new sector. The assessment of business opportunities by consumer research, polls, and competition will reduce significant risk and assist in preparatory sessions.

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