SkeletonSlide6_2010Fall_MGMT324

SkeletonSlide6_2010Fall_MGMT324 - MGMT 324 Marketing...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: MGMT 324 Marketing Management Sangwoo Shin Fall 2010 Sections 5 & 6 Sep 20, 2010 C ompetition How many Who Current 4 P decisions Entry Topics for Today ( 3 C Checklist: C ompetition) Possible reactions Expected future actions Entry Game Enter if E > 0 , Stay out otherwise Entrant Enter Stay Out Entrant s profit Incumbent s profit ( I < M ) E I M Entrant Incumbent E = (P E MC E ) * Sales E Fixed Costs E Entrants expected profit Sales E depend on 1) Price of incumbent/s 2) Consumers willingness to pay for entrants product and all other substitute products 3) Size of the market Should be willing to pay up to M I to prevent entry Entry Deterring Strategy Product proliferation Cereal Companies (Kellogg, General Mills, Quaker Oats, Post) Makes E less than 0 Raising rivals costs Forces entrant to incur higher fixed costs ex) Coke & Pepsi, Slotting allowances Forces entrant to incur higher variable costs...
View Full Document

This document was uploaded on 03/03/2012.

Page1 / 9

SkeletonSlide6_2010Fall_MGMT324 - MGMT 324 Marketing...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online