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The perils of high‐growth markets

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  • David A. Aaker
  • George S. Day

Abstract

The conventional wisdom that businesses should invest in growth markets is based upon the assumptions that, in the early phase of a growth market, share gains are easier and worth more, the experience curve will lead to advantage, price pressure will be low, needed access to the technology will result and future entries will be deterred. These assumptions are examined and six major types of growth market risks are discussed. Finally, conditions which should be present if an early entry into a growth market is attempted are identified.

Suggested Citation

  • David A. Aaker & George S. Day, 1986. "The perils of high‐growth markets," Strategic Management Journal, Wiley Blackwell, vol. 7(5), pages 409-421, September.
  • Handle: RePEc:bla:stratm:v:7:y:1986:i:5:p:409-421
    DOI: 10.1002/smj.4250070503
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    Cited by:

    1. Moren Lévesque & Maria Minniti & Dean Shepherd, 2009. "Entrepreneurs’ Decisions on Timing of Entry: Learning from Participation and from the Experiences of Others," Entrepreneurship Theory and Practice, , vol. 33(2), pages 547-570, March.

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