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When a New Firm Considers Entering a Market, It Takes

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Essay

When a new firm considers entering a market, it takes into account only the profit it would make. What are the two external effects that occur in the market that the firm does not consider?


Definitions:

General Concern

A broad interest or worry that affects or involves many people.

Status Quo

The existing state of affairs, particularly in terms of social or political issues.

Refreezing

Refreezing refers to the final stage of Lewin's change model where new behaviors or changes are solidified into everyday practices.

Lewin's Change Model

A framework for understanding organizational change involving three steps: unfreezing, change, and refreezing.

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