When a New Firm Considers Entering a Market, It Takes

question 233

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?

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Definitions:

Threats

Indications or warnings of potential harm, danger, or negative outcomes.

Feedback

Information given to a person or system about their performance or behavior, intended to guide future improvements.

Strategically

In a manner that is carefully planned to achieve a specific end or advantage.

Communication

The process of transmitting information, ideas, emotions, skills, and knowledge from one person or group to another.