Response to crises at a competitor
Posted: Sun Dec 22, 2024 10:42 am
: Suppose an entrepreneur in the food industry sees a major scandal unfolding at a competitor, for example, a case of food poisoning. Despite no direct evidence that their own products are at risk, the entrepreneur may invest disproportionate resources in revising safety protocols, driven by the high-profile nature of the incident, rather than an objective assessment of their own risks.
Focus on recent sales data: An entrepreneur may see a short-term indian whatsapp number surge in sales of a particular product and decide to scale up production significantly, driven by recent success experience. This decision may be made without considering longer-term sales data or market trends, which can lead to overproduction if the sales spike was only temporary. This happened to many entrepreneurs during the corona crisis.
Investment decisions based on media reports: An entrepreneur may decide to invest in a particular technology or market simply because it receives a lot of media attention. This high-profile coverage may distort the perception of the potential of that investment without a thorough analysis of the actual opportunities and risks. This can result in a decision based more on the visibility and hype surrounding the technology or market than on solid business analysis.
Focus on recent sales data: An entrepreneur may see a short-term indian whatsapp number surge in sales of a particular product and decide to scale up production significantly, driven by recent success experience. This decision may be made without considering longer-term sales data or market trends, which can lead to overproduction if the sales spike was only temporary. This happened to many entrepreneurs during the corona crisis.
Investment decisions based on media reports: An entrepreneur may decide to invest in a particular technology or market simply because it receives a lot of media attention. This high-profile coverage may distort the perception of the potential of that investment without a thorough analysis of the actual opportunities and risks. This can result in a decision based more on the visibility and hype surrounding the technology or market than on solid business analysis.