- A scenario of [company versus company](http://garyteh.com/2018/04/trading-strategy-capitalizing-on-loss-aversion/)
- On 9th Jan 2019, Amazon announced the launch of DocumentDB a direct competitor to MongoDB
- Key areas used to assess potential impact of new entrant
If incumbent's distribution channel was in anyway disrupted by new entrants
- If solution has sufficient lock in cost
- Market segment differentiation through analysis of product features
- Short term: [Loss aversion, reversion to mean](http://garyteh.com/2018/04/trading-strategy-capitalizing-on-loss-aversion/) scenario
Market reacted by falling 17%
- Market recovered in 14 days
Related references
- [Trading strategy capitalizing on loss aversion and reversion to mean, Gary Teh](http://garyteh.com/2018/04/trading-strategy-capitalizing-on-loss-aversion/)