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Realization of this threat would immedi-ately disrupt ACC’s pricing strategy and could affect long term profitability.
The threat of lower prices is compounded by the intensity of the current competitive mar-ket. ACC should be concerned with any new competitor, but specifically the operational excellence that (discussed later in this case) DJC has demonstrated could greatly affect ACC’s competitive-ness in the market. When and if DJC or any other competitor enters the marketplace, ACC will have a limited amount of time to evaluate its next course of action; disregarding the arrival of a formidable competitor like DJC will prove to be a foolish decision...
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