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CH6 ENTRY (Entry-Deterrence Checklist (Production barriers (Economics of…
CH6 ENTRY
Entry-Deterrence
Checklist
Switching costs
Reputation
Production barriers
Economics of scale, access to inputs,
location, patents, subsidies :check:
Sunk costs
Incumbent has incurred them and entrant has not :check:
Tie up access
Channels are few and hard to replicate.:check:
Limit pricing
Predatory pricing
Holding excess capacity
Entry Conditions
:black_flag: blockaded entry
隔絕進入
structural barriers
:checkered_flag: accommodated entry
接納進入
rapid technological change
growing demand
:black_flag: deterred entry
阻擋進入
predatory acts
entry vs incumbent
Forms of Entry
brand new firm
established firm
diversifying into new market
Forms of Exit
fold up
leave a particular market
Barriers to Entry
Strategic barriers
:forbidden: Capacity expansion 產能擴充
not always for strategy
threaten to lower the price
:forbidden: Predatory pricing 掠奪式訂價
intend
concerned market share,
not profits
incumbent low MC
directed at entrants already entered
sets the price below MC
:forbidden: Limit pricing 限制定價
directed at potential entrants
適用狀況
理性預期
entering firm in uncertain information
incumbent cost advantage
何時漲回價格?
持續多期
Reported
Entry Deterring Strategies
price reductions for learning curve
advertising to create brand loyalty
patents
predation using announcements
Limit pricing, excess capacity
Structural barriers
:no_entry: Marketing advantage
incumbent easy negotiate the vertical channel
brand umbrella
:no_entry: Economies of scale and scope
hit and run strategy
If entrant succeeds,
intense price competition may ensue
:no_entry: Control of essential resources
Nature,
Patents,
Special know how