Existing firms may seek to inhibit potential entrants by:
A)reacting before entry and positioning after.
B)reducing fixed costs.
C)positioning before entry and reacting after.
D)adopting the Cheerios defense.

Question

Quizplus · Accepted Answer

Existing firms may try to position themselves well in the market and establish brand loyalty before potential entrants have a chance to enter. Additionally, they may wait to see how the market reacts to new entrants and then react accordingly. This can make it more difficult and risky for potential entrants to enter the market. Option A and D are not relevant strategies for inhibiting potential entrants. Option B may be a good strategy for reducing costs, but it does not directly inhibit potential entrants.

Existing Firms May Seek to Inhibit Potential Entrants By