An entrepreneurs might have established himself well in a local market and might have had a singular position. He might have had complete domination over one or a few products without any rivalry. However that does not ensure his continuation in the market or sustenance of his products and his firm. The threat of new entry either in terms of a new idea, a new package, a new service or lowered cost might destabilize his dominance in the market. This treat could in the following ways:

(i)    Large scale capital interventions.
(ii)    Product volume interventions.
(iii)    Large-scale distribution interventions.
(iv)    Establishing a distinct competency.

Capital Intervention. An entrepreneur might be operating with moderate capital investment there manufacture and is attributions of particular product and substantial period of time. Yet if there is any other entrepreneur who in intervenes in the production and distribution of the same or a similar product with a very large capital investment, this might result in a king of disequilibrium in Markey for the first entrepreneur. The quantum of capital investment may be so large that moderate or small-scale entrepreneur might find it extremely difficult to compete due to lack of investments matching the new entrant.

Product-volume intervention. The products in the market, are either consumable or non-consumable, the very size of their market may be quite mind-boggling. No single entrepreneur could meet the entire requirements of the market. In such a situation it exclusively depends on the capability of the entrepreneur to reach the market. In the event any single player in the market is able to produce a sizable volume of the product might bring about a disequilibrium in the market forces. In such a case, the small entrepreneurs would not be in positioned provide the need supply to the market. The product that is easily accessible might carry the consumers with it. An entrepreneur has to be cautious about such things and needs to do strategic planning for protecting his market.

Intervention in Distribution System. A small entrepreneur might have a good product to offer, but he may not have mechanism for distribution of the products. in the absence of a well-organized distribution system, the access to the potential market is denied to the entrepreneur. In contrast, an entrepreneur who has an organized network for distribution of goods may have an advantage over the other, though his product may not have that same quality as that of the other entrepreneur. It is therefore vital for an entrepreneur to have hold over the distribution channels as the hold and the penetration into the market is an important gradient to define the success of the entrepreneur.

Intervention through Distinct Competence. While examining the market dynamics, it may be observed that the goods of certain brands have distract place in the market and far ahead in the competition. Most often this happens names, image, service, etc. All these add to the reputation of the entrepreneur. A market of his own unless he demonstrated his competence and the sustainability of his product or service. In case of an entrepreneur having established a market, arrival of a new entrepreneur with products based on a distinct competence is a matter of great threat.

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