Unformatted text preview: monopoly by charging the lowest price (preliminary pricing) to fight out the competitors. Also, it is difficult for new entry. A new entrant into the office superstore market must enter both the local and national level to check anticompetitive pricing by market incumbents. The new entrant should establish a sufficiently large presence in each of the affected markets that the new entrant can achieve economies of distribution and advertising and ca effectively constrain pricing by local market participants. New firm has to be “critical mass”. However, there is little room for new stores. Since Staple and Office Depot enjoy the first-mover advantage....
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- Spring '09
- Office Depot, office supplies, Staples, Staple and Office Depot, national office superstores