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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.
Aaker et al. (1986) studied this question.