Chapter 7. When and How to Use Differentiation Entry Strategy
Adapting to an existing market usually avoids demand risk because the market demand is fairly well understood compared to shaping a new market, which we discuss in Chapter 9. However, adapting to an existing market forces you to contend with the market incumbents and, therefore, subjects you to competitive risks. Finally, adapting to a new market usually implies that you have to overcome entry barriers. Thus, you are also susceptible to capability risks.
In Early Product Lifecycle—Differentiate
Two basic adaptive entry strategies exist: differentiation or low-price. In most entries, there are elements of both strategies present to a greater or lesser extent (recall the Lexus example). ...
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