Application of the PSE model for market entry: Ericsson enters the US market
Abstract
Purpose
The purpose of this paper is to present the application of the PSE model (perceived barriers to market entry; strategy competence; entry strategy) for market entry.
Design/methodology/approach
The PSE model is presented and illustrated by Ericsson's entry into the mobile systems market in the USA. Advice on the application of the model is presented.
Findings
The case shows key lessons in entering an international market: the barriers as regards the necessity of adapting the technology to local standards, and the necessity of customer acceptance were perceived as particularly high; there was a high degree of relatedness with Ericsson's core competence, and substantial market experience was gained; and Ericsson preferred organic entry modes regarding its core products such as mobile telephony systems.
Research limitations/implications
The lessons may be subject to tests in broader studies.
Practical implications
In applying the PSE model, management would be advised to choose entry strategy and pay attention to entry barriers, business relatedness, and market experience.
Originality/value
The article turns a theoretical model into advice that is valuable for companies when they formulate international strategies. The case shows a practical model application.
Keywords
Citation
Pehrsson, A. (2008), "Application of the PSE model for market entry: Ericsson enters the US market", Business Strategy Series, Vol. 9 No. 4, pp. 168-175. https://doi.org/10.1108/17515630810891834
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited