Incumbent firms

Incumbent firms are established companies that are already operating in a market or industry. They have an existing customer base, brand reputation, and resources, which often give them a competitive advantage over new entrants. These firms tend to be more resistant to change and may use their position to maintain dominance through innovative practices, pricing strategies, or barriers to entry. Essentially, incumbents are the long-standing players in a market who have a significant influence over industry standards and trends.