In business, strategic entry deterrence refers to any action taken by an existing business in a particular market that discourages potential entrants from entering into competition in that market. Such actions, or barriers to entry, can include hostile takeovers, product differentiation through heavy spending on new product development, capacity expansion to achieve lower unit costs, and predatory pricing. These actions are sometimes deemed anti-competitive and could be subject to various competition laws.
Read more about Strategic Entry Deterrence: Limit Price, Signalling, Pre-emptive Deterrence, Predatory Pricing, Doomsday Device
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