Market Entry and New Competitor Threat Assessment
Evaluate a new entrant or adjacent threat.
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Assess whether a new entrant or adjacent competitor threatens my business, using a decision tree. The newcomer: [NEW_ENTRANT_DESCRIPTION]. My business: [MY_BUSINESS]. My customers and why they buy from me: [CUSTOMER_REASONS]. Work through each node, answer with evidence from my description or say what you would need to know: NODE 1: Does the newcomer serve the same customer problem? If no, classify as watch only. NODE 2: Is it better or cheaper on the factors my customers care about most? If yes, estimate how many of my customers might notice. NODE 3: Do they have resources to scale (funding, brand, distribution)? NODE 4: Can they be copied or answered easily by me? If yes, list how. NODE 5: How high are the switching costs for my customers? NODE 6: Are they changing the market in a lasting way (pricing model, technology) or is it a short promotion? Result: classify the threat as low, moderate, or high, with a confidence level. Provide the 90-day response: monitoring signals, customer conversations to hold (with five questions), retention actions, and a decision point with a trigger. Avoid panic moves and say which assumptions need testing.
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