Question

Many firm choose to enter the market early to get a number of advantages including the opportunity to do monopoly of the business. What are some benefits of entering market early? There are opportunities to enter the market late. Why a firm may choose to enter into a market late?

Answer 1

Advantages of entering a market early

1. Capture the audience with your product and build a strong raaport with your customers which can lead to brand recognition and brand loyalty.

2. There are no predefined standards so you can set up your own industry standards.

3. Gain contol over the best of resources before any other player enters the market.

4. It can be highly advantageous if there is high switching cost for consumers

Advantages of late entry into a market

1. Less capital is spend on research and development.

2. Product gap can be seen more easily.

3. Less amount is spend on gaining knowledge of market conditions.

4. Customer acquisition is potentially easier.