Question

Explain what ‘product proliferation’ is and when it can be used to deter firms from entering...

Explain what ‘product proliferation’ is and when it can be used to deter firms from entering a market. Include any relevant empirical evidence.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Product proliferation usually occurs when the organizations market results in variation of same commodity, through various colour combinations, product’s size and uses. This helps in producing diversity of the product for the firm because its able to capture the sizable portion of its market.
When the incumbent firms create and introduce the products in the effort to fill the product space in a manner which leaves an unmet demand for the entrants. For the managers its one of the mist common acts which they use to restrict entry in the mature industries and sustain the growth profitable with quickly maturing the products.
The previous researches depicted that once the product line’s length is specified as the endogenous in share and piece determinations. The decisions have both demand and supply market share price implications.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Can you think of any other advantages that MNEs from developed countries may have when entering...
Can you think of any other advantages that MNEs from developed countries may have when entering an emerging market?
Suppose that three firms, 1, 2, and 3, produce a homogeneous product in a market with...
Suppose that three firms, 1, 2, and 3, produce a homogeneous product in a market with market demand Q = 40 – 2p. Each firm has constant marginal cost c = 2 and has no other costs. (a) If the three firms are Cournot competitors who simultaneously and independently choose outputs, what is the equilibrium industry output? (b) If the firms can collude to jointly choose output to maximize their total profit, what would be the industry output? (c) Now...
1) Explain three ways that a firm that is considering entering an overseas market can use...
1) Explain three ways that a firm that is considering entering an overseas market can use market orientation to its advantage. 2)   Explain two reasons why culture may play a role in a company repositioning its brand when entering a foreign market 3) Explain how and why the two different thinking styles (analytic vs. holistic) can be applied differently to explain country-of-origin effects. 4) Explain three challenges that managers are likely to encounter when implementing value-based pricing and potential ways...
What are some firms that have used their augmented/ enhanced product to really increase market share?...
What are some firms that have used their augmented/ enhanced product to really increase market share? Describe their proceses
Price competition between firms, from the firms’ perspective, can be similar to the prisoners’ dilemma. The...
Price competition between firms, from the firms’ perspective, can be similar to the prisoners’ dilemma. The best outcome for all firms would be for all to charge a high price. However, if the other firms charge a high price, any individual firm has incentives to charge a low price and steal the market. Additionally, if any other firm chooses a low price, each firm should charge a low price too so that it doesn’t get priced out of the market....
Game theory is often used to explain pricing in monopoly markets, where the monopoly tries to...
Game theory is often used to explain pricing in monopoly markets, where the monopoly tries to fool the regulators and get a higher price situations where a firm has a natural monopoly oligopoly markets any unregulated market Economies of scale are achieved by producing larger quantities producing smaller quantities producing in a country with a larger economy. becoming a monopoly An oligopolistic market has a small number of rival firms, and each is large relative to the size of the...
State whether the following statements are true or false, and explain why. Perfectly competitive firms have...
State whether the following statements are true or false, and explain why. Perfectly competitive firms have no control over the price they charge for their product. For a natural monopoly, average cost declines as the number of units produced increases over the relevant output range. An oligopolist has a larger than average portion of total market share without having to do any advertising.
N firms are competing by producing the same product. The quantity of production by firm i...
N firms are competing by producing the same product. The quantity of production by firm i is denoted by qi . Each firm chooses the quantity (any positive number) without knowing the other firms’ choices. The profit of each firm depends on the market price and the cost of production. The market price is given by P=100-∑qi, and the cost of producing quantity qi is C(qi)=40qi. When N=1, it is the case of monopoly. What is the optimal quantity of...
Respond to these questions: • Explain what dummy variables are and how they can be used...
Respond to these questions: • Explain what dummy variables are and how they can be used to account for seasonality. • Please cite at least one academic article (APA or MLA format). • Select a product or service of your choice and explain how you would use dummy variables to measure seasonality in the sales of that product or service. • Explain the expected sign of each dummy variable.
QUESTION 1 In a constant-cost industry where firms have identical cost, what will happen to the...
QUESTION 1 In a constant-cost industry where firms have identical cost, what will happen to the profit of the firms in the long run? Some firms will make positive economic profit, while some firms will make zero economic profit. All firms will be making zero economic profit. Only firms with positive economic profit will stay in the industry, because firms with negative or zero economic profit will exit the industry. Firms can be making positive, zero, or negative economic profit....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT