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Problem

What would be the most appropriate competitive strategy for a small firm wishing to enter a well-established national market?

Step-by-step solution

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Step 1/2

When an organization operates globally, it faces many challenges as well as opportunities. It is essential that an organization have effective strategic planning in order to eliminate challenges and make use of opportunities. Depending on the market in which the organization is operating, effective strategies can be formulated.

Step 2/2

Consider a small firm that wants to expand its business operations into a well-established market. The competitive strategy that can be adopted by a small firm has been discussed as follows:

The organization can select the focus strategy. Through this competitive strategy, the organization can select a small target segment in the market and promote its business operations there. This approach enables the organization to gain reputation and visibility in the market and, hence, gradually expand its business segment.