Is the incumbent crying or laughing: when does the entrant adopt the market expansion entry strategy?
Shu Wang,
Dun Liu,
Jiajia Nie
Abstract:PurposeIt is only logical that a firm aims to make a profit after entering the market. However, some firms enter the market with the goal of market expansion and even burn money to pursue market share, which is counterintuitive in practice. To explore the theoretical foundations behind this rare phenomenon, this paper focuses on discussing the impact of the market expansion entry strategy on the entrant firm and the incumbent firm.Design/methodology/approachUsing a game theory model of a supply chain with an i… Show more
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