Wednesday, January 23, 2008

Performance Predictors as a Barrier to Entry

An organisation with very prominent and relevant performance predictors will act as a barrier to entry for other would-be industry entrants. The organisation will in affect 'scare-off' prospective competitors.

In this regard, performance predictors are a risk reduction strategy for the organisation implementing them. That is, the performance predictors reduce the risk of excessive competition within the industry.

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