Question: When an incumbent faces a new entry from a competitor to the market, this incumbent should decide whether to go offensive and initiate aggressive strategic

When an incumbent faces a new entry from a competitor to the market, this incumbent should decide whether to go offensive and initiate aggressive strategic moves to improve its market position, or whether to employ defensive strategies to protect its market position. As a result, a competitive dynamic-action and response begin in the market.

Suggest and critically discuss a model that helps managers to decide to adopt an offensive or defensive route according to Competitive Dynamics theory. Support your answer with examples. (400 words)

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