PurposeThe purpose of this paper is to, first, present Red Queen competition as a psychological explanation of market entry failure and then, second, illustrate how an intervention called Intelligent Fast Failure (IFF) can be used to avoid faulty market entry decisions.Design/methodology/approachUsing Red Queen competition as a lens, a theoretical analysis of how IFF can improve market entry decision-making is provided.FindingsThis paper supports the view that failure is a valuable source of organizational learning. Moreover, the analysis suggests that IFF may provide learning that is valuable for market entry decision-making.Originality/valueWhile IFF has previously been applied to areas such as foreign language learning, aeronautical safety, and technology-based design, no one to date has suggested its value as an organizational learning tool for market entry. Therefore, this paper is a valuable resource for researchers, managers, and consultants who provide organizational learning and strategic planning services to organizations.