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Expected Retaliation
The anticipated response of existing competitors to new entrants in the market.
Implications
The anticipated response from competitors when a company makes a strategic move, such as a price cut, product launch, or market entry, often considered in competitive strategy to assess risks and potential outcomes.
Example
Example: A telecom company considers expected retaliation before lowering its prices, anticipating that competitors might follow suit, leading to a potential price war and reduced profitability for the entire industry.
Related Terms
Different from direct competition, which involves current and active rivalry, expected retaliation is a forward-looking consideration of how competitors might respond to strategic actions.
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