Managers may consider entering a market in which strong competition already exists if they believe entering a competitor's home market will distract the competitor's attention from the new entrant's own home market.

Question

Quizplus · Accepted Answer

This is a valid strategy known as "hit and run" where a company enters a competitor's home market to distract them and gain a foothold in that market, while reducing the competitor's focus on their own home market. However, it is important for managers to carefully evaluate the potential risks and benefits of this strategy before implementing it.

Managers May Consider Entering a Market in Which Strong Competition