The Wheel of retailing Gain entry with low prices Gain trust and loyalty Add offerings and raise prices Differentiate from new no-frills entrants
The Wheel of Retailing • Gain entry with low prices • Gain trust and loyalty • Add offerings and raise prices • Differentiate from new no-frills entrants
Incumbent response to entry Keep cannibals in family VS Dont cannibalize yourself Is the entrant creating value for all segments? or Is it a bundling/unbundling play
Incumbent Response to Entry Keep cannibals in family? vs. Don’t cannibalize yourself Is the entrant creating value for all segments? or Is it a bundling/unbundling play