Management Research: Strategic Management - 5 Forces: Threat of Entry (Retaliation)

Welcome, dear listeners,

In this episode, I talk about #retaliation #strategy or retaliation actions. This is one of the anticipated drivers for the Threat of Entry - one of the forces in the e#5forces framework by #Porter. The main idea is that the fact that incumbent market players may retaliate if you (try to) join their market may hinder you from entering the market. Yet, this driver is related to the intensity of competition - the higher the competition, the harder it is to retaliate for dispersed incumbents. If the market is being dominated by a few firms with plenty of resources, such actions are nothing but #signalling. And not only to you, but also to other potential entrants and, thus, a desired strategy. 

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Best

Eugene (Yevgen)