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Application of the PSE model for market entry: Ericsson enters the US market

Anders Pehrsson (Professor at the School of Management and Economics, Växjö University, Växjö, Sweden.)

Business Strategy Series

ISSN: 1751-5637

Article publication date: 4 July 2008

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

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited