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Threat of new competitors

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When a company is profitable, there is always the threat of new competitors. The market structure may deter new entrants. For example, if there is a significant investment required to enter the market, competition may be minimal. However, if the investment to start a business is minimal, the threat of new entry is substantial. Managers can use different techniques to differentiate their companies from competitors. In the following discussion, consider the strategic techniques a manager might use to accomplish this differentiation.

Which strategy is better, in your opinion: high-quality or low price? Explain your reasoning.

Reference no: EM131191613

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