Competitor Analysis and Foothold Moves

A foothold is a small position that a firm intentionally establishes within a market in which it does not yet compete. We extend theory on competitive dynamics to examine relationships between competitor analysis and foothold moves. Whereas it seems logical that an antecedent that is negatively related to the likelihood of foothold attack would be positively related to the likelihood of foothold withdrawal, we theorize and find evidence to the contrary. In a sample of firms with footholds, market commonality, resource similarity, and their interaction are each related in the same direction to both foothold attack and withdrawal.