In an oligopoly, how does the entry of a new competitor like eFitness affect Gary's Gym's economic profit and strategic decisions?

In an oligopoly, a few companies dominate the market, and their decisions can greatly affect one another. When a new competitor like eFitness enters the market, it can change the competition level, leading to potential changes in prices and services offered. For Gary's Gym, this could mean a decrease in economic profit because more choices for consumers might lead to lower membership fees or special promotions to attract customers. Gary's Gym may need to rethink its strategies, perhaps by improving its services or creating unique fitness programs to keep members engaged and loyal. For example, if eFitness offers lower prices, Gary's Gym might respond by adding group classes or personal training sessions to differentiate itself and maintain its customer base.