Growth through Entry 
Entry and rivalry
Tool for analysis
Using Game Theory to Understand
Post-entry Strategies
Members
104212014 Diane
104212018 Martin
104212033 Jason
104212044Pauline
104212080 Amy
105245914 Ace
Weekly vocabulary
Pre-entry Strategies
Identifying Potential Rivals
Gaining insight into rivalry
Fighting Strategy
Cooperative Strategy
Restructuring Strategy
Deterrence Strategies
Accommodation Strategies
Rivalry
Cooperation
Five forces analysis
symmetric
asymmetric
sequential
duopoly
Growth through entry
Entry and rivalry
( Focus on rivalry)
Offering new product and services to existing markets where you compete
Offering existing products and services into markets new to the organization.
Entry Strategies
Pre-Entry
Game-theoretic analysis
Why is it important?
Conclusion
What is it?
Predict the overall intensity of rivalry as a result of structural factors
The effect that competing firm' actions have on each others' competitive positions
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Selectively eliminates some competitors
Drive down margins
Threat of entry
Intensity of rivalry
A firm that anticipates and addresses competitors' moves and counter-moves will perform better
Strategies to reduce the incentive to enter
Strategies to increase the cost and risk of entry
Reduce the quality of information on costs and demand
Make retaliation more credible
Erect structural barriers
Raise factor costs
Limit pricing
Commit to a position that will soften competition after entry
Make commitment limiting your ability or incentives to compete aggressively
Accomodate entry if deterence is too costly
Organize to facilitate future coordination
Dose entrant face retaliation?
Do incumbents have a competitive disadvantage?
Dose entrance face high sunk cost?
The number of competitor is big or small ?
Incentives to fight are high or low?
Prisoner's Dilemma
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based on available options and associated future payoffs
Predict competitors’ likely actions and reactions
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Price Cutting
Impose costs in non-cooperative strategy
Intensive advertising
Cost advantage
Network externality
Niche position
Differentiation
Public good in the early stage
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Share incentives
Repeated gain
Promise avoiding aggressive competition
Prisoner's dilemma
Tit-for-Tat
Broad strategic actions to change present competition rules
Examples
Introduce new products or services
Acquire resources and capabilities
Diversification
Enter or creat new markets
Consolidate market power
Non-market strategies
Deter
Accommodate
Realize two things of “outside” firms
⚠ Economic motivations
⚠ Strategic trajectories
Same vertical industry chain
Value chain overlaps
With relevant capabilities and underutilized resources
Recent entrants to related industries
Geographic expansion in same industry
Firms that take minority ownership stakes of existing rivals
Analyzing competitive exchanges
Types of games
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Known objectives and payoffs
Single-period simultaneous-move games
Multi-period repeated games
Multi-period sequential games
Limited number of competitors and alternatives
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Considerations
Challenges
Mapping games
Payoff matrices
Decision trees
Symmetric vs. Asymmetric
Single shot vs. Repeated games
Horizon effects
Cooperate vs. Compete
Trust and communication
Post-Entry
Cooperate
Fight
Restructure
Signaling
Commitment
Make large, specialized investments
Forego short-term opportunities
Provide information to encourage coordination and restraint
Selective release of information to influence competitors