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Argue the case for and against the following business succession strategies i. Early entry strategy ii. Delayed entry strategy.

      

Argue the case for and against the following business succession strategies i. Early entry strategy ii. Delayed entry strategy.

  

Answers


Martin
i) Advantages of early market strategy

- The first entrant gains early recognition.
- He is also able to establish reputation in the market place.
- The existing product also benefits from consumer traits as it will gain a stable preference pattern.
- The pioneer is able to occupy proffered market position.
- The production costs are also lower than those for later entrants.

ii. Disadvantages of early entry strategy

- The first entrant bears most of the costs and risks of developing the product
- Bears the risk of developing the market of the product.
- He must also absorb the risk that imitators may copy the innovation in a short time and with fewer costs

iii. Advantages of delay entry strategy

- Do not have to bear costs and risks of developing the product.
- They enter an already developed market

iv)Disadvantages of delay entry strategy
- Later entrants require rapid technological evolution for production of their products.
- They require heavy marketing investments to gain a jump on competition against earlier entrants.

marto answered the question on January 30, 2019 at 08:29


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