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In second, his position as late-movers, allowed them to enter in the market with a lower price than its competitors. A lower price is a good strategy to quickly gain market share. Last but not least important, thanks to his father’s money, they had sufficient financial resources to maintain their prices.
2. How do you expect Aer Lingus and British Airways to respond? Why?
The entry of a new competitor represents an entry price below the market’s price. Aer Lingus and British Airways had two different choices to react: maintaining their current level of prices, or start a price war with Ryanair...
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