Anticipating Competitor Responses in Market Entry PPT
This PPT slide, part of the 27-slide Psychology of Market Entry Analysis PowerPoint presentation, addresses a critical issue in market entry strategy, focusing on the need to anticipate both market share and revenue expectations. It highlights a common cognitive bias known as the "brick wall effect," where companies fail to consider how existing competitors might react to new entrants. This oversight can lead to unrealistic assumptions about market dynamics and potential revenue generation.
The left side of the slide outlines the common biases that companies face. It emphasizes that firms often believe competitors will not alter their pricing, product offerings, or strategies in response to new competition. This narrow focus on current competitors can blind companies to the broader market landscape, which includes potential shifts in behavior from established players.
On the right side, the slide provides actionable recommendations to mitigate these biases. One suggested approach is to conduct role-playing exercises that simulate competitor responses. This method encourages executives to think critically about how existing players might react, allowing for more informed decision-making regarding entry strategies. Additionally, using a reference class can help set realistic expectations for market share estimates, ensuring that companies do not overestimate their potential success.
Overall, the slide serves as a reminder that understanding competitor behavior is essential for effective market entry. Companies that neglect this aspect risk misjudging their position and facing unexpected challenges. The insights provided can help organizations refine their strategies and improve their chances of success in new markets.
This slide is part of the Psychology of Market Entry Analysis PowerPoint presentation.
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