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Incumbent firm

Incumbent firms are businesses already established in each market or industry. They may have the advantages of having built up a loyal base of customers and also achieved internal economies of scale so that their average costs are lower than those of a rival / challenger supplier or brand.

Here are four examples of incumbent firms:

  1. Microsoft: Microsoft is an incumbent firm in the computer software industry, with a strong presence in operating systems, productivity software, and gaming.
  2. Coca-Cola: Coca-Cola is an incumbent firm in the beverage industry, with a strong presence in the production and distribution of soft drinks.
  3. IBM: IBM is an incumbent firm in the technology industry, with a strong presence in computer hardware, software, and consulting services.
  4. General Electric: General Electric is an incumbent firm in the industrial and manufacturing industry, with a strong presence in a variety of sectors including energy, aviation, healthcare, and transportation.

See also

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