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Competitive reactions to market entry: The case of the Finnish grocery retailing industry

Outi Uusitalo (School of Business and Economics, University of Jyväskylä, Finland)

British Food Journal

ISSN: 0007-070X

Article publication date: 1 September 2004

Abstract

Grocery retailing markets are becoming more open and international. Finland is an example of a previously closed and restricted market which has recently opened its borders to foreign food products as well as food retailers. This paper describes the competitive dynamics and actions of the domestic retailers that took place when the first foreign grocery retailer entered the market. The paper concludes that the main competitive moves were related to the price of food products and to changes in product ranges. The domestic retailers imitated the concept of the entrant and added new low‐priced own brands into their product mixes. The roles of the market actors were reversed during the entry process: the domestic market leaders became followers and the small entrant played the role of the market leader.

Keywords

Citation

Uusitalo, O. (2004), "Competitive reactions to market entry: The case of the Finnish grocery retailing industry", British Food Journal, Vol. 106 No. 9, pp. 663-672. https://doi.org/10.1108/00070700410558193

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited