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1 – 10 of over 23000This study examines the importance of 25 barriers to market entry in industrial markets. A survey of 93 firms indicates that majority of business executives consider cost…
Abstract
This study examines the importance of 25 barriers to market entry in industrial markets. A survey of 93 firms indicates that majority of business executives consider cost advantages and capital requirements to enter markets as the two most important barriers to entry followed by incumbents having a superior production process, capital intensity of the market, and customer loyalty. The least important barriers perceived by the executives in the study are government licensing requirements, followed by heavy advertising. In addition, the study investigates the underlying dimensions of barriers to entry in industrial market through a factor analysis. The results indicate that there are four major underlying dimensions of entry barriers in industrial markets.
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The purpose of this paper is to review previous research and to propose a model for the impact of barriers to entry on the market strategy of an entrant firm, where product/market…
Abstract
Purpose
The purpose of this paper is to review previous research and to propose a model for the impact of barriers to entry on the market strategy of an entrant firm, where product/market scope and product differentiation are central strategy components. The paper asks, what is the impact of barriers on market strategies of entrants? Are early and late entrants affected in different ways?
Design/methodology/approach
A model and propositions are developed‐based on a review of previous research. The model applies the contingency perspective and company cases exemplify the model.
Findings
It is proposed that a firm that enters a market late and faces extensive barriers would choose a broader product/market scope and differentiate its products to a larger extent than an early entrant. It is also proposed that incumbents' market strategies indirectly affect the market strategy of an entrant firm as incumbents' market strategies interact with barriers, and the effects are due to entry timing.
Research limitations/implications
The study contributes theoretically as it extends current knowledge of the impact of barriers to entry on strategy. Management of entrant firms are advised to strive for a fit between barriers and market strategy and consider the propositions.
Originality/value
The model and the propositions concern barrier effects on two key components of the market strategy of an entrant firm: product/market scope and product differentiation. Another important value is that the model accounts for interactions between incumbent strategies and barriers to entry, and effects on the market strategy of an entrant firm.
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Changgyu Yang, Sang‐Gun Lee and Jaebeom Lee
Given the increasingly saturated information and communication technology (ICT) market and the intensification of competition among ICT firms, there is a need for a better…
Abstract
Purpose
Given the increasingly saturated information and communication technology (ICT) market and the intensification of competition among ICT firms, there is a need for a better understanding of entry barriers in the ICT market. The purpose of this paper is to examine the overall characteristics of these entry barriers and identify firms' strategies for achieving market dominance.
Design/methodology/approach
The authors examined the overall characteristics of these entry barriers and identified firms' strategies for achieving market dominance by tracking the actual patterns of firms' ICT market entry based on the Bass diffusion model.
Findings
The results indicate that the saturation of the ICT market reduced entry barriers, which strengthened the imitation effect. In addition, entry barriers were lower for ICT firms than for non‐ICT ones. Furthermore, entry barriers were higher for the manufacturing sector than for the service sector, indicating that the innovation effect was stronger for the manufacturing sector than for the service sector, whereas the opposite was true for the imitation effect.
Originality/value
These results suggest that those firms that are planning to enter or are already in the ICT market should develop better strategies for gaining a competitive advantage.
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The purpose of this paper is to examine economic debates over the conception of barriers to entry and speculates which definitions can be applicable to the telecommunications…
Abstract
Purpose
The purpose of this paper is to examine economic debates over the conception of barriers to entry and speculates which definitions can be applicable to the telecommunications industry, more specifically, the residential broadband market. Also, it seeks to clarify the various industrial factors that could prevent or mar the success of entry into the residential telecommunications market and it also seeks to introduce an analytical framework that can be adopted for evaluating the barriers to entry.
Design/methodology/approach
The approach takes the form of a literature review.
Findings
It clarifies the various industrial factors that could prevent or mar the success of entry into the residential telecommunications market and introduces an analytical framework that can be adopted for evaluating the barriers to entry.
Originality/value
Although market entry barriers are crucial industrial factors that influence the market share and profit of firms already in the market, very little research has specifically examined barriers in the telecommunications and broadband industry.
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Milla Laisi, Miika Mäkitalo and Olli‐Pekka Hilmola
The purpose of this paper is to understand the main market entry barriers confronted by the new operators in liberalized railway freight market (Poland and Sweden), as well as to…
Abstract
Purpose
The purpose of this paper is to understand the main market entry barriers confronted by the new operators in liberalized railway freight market (Poland and Sweden), as well as to analyze the inaugurating market of Finland.
Design/methodology/approach
Swedish and Polish markets were scrutinized utilizing qualitative case study, implemented through semi‐structured theme interviews. Among primary observations, numerous second‐hand sources were used to gain triangulation. Research was conducted during early 2009. The Finnish material was collected with Delphi technique‐based questionnaires in 2005.
Findings
The main findings support previous studies arguing that the main barriers to entry are rolling stock acquisition, needed investments and bureaucracy. In Sweden, companies were start‐ups established on the grounds of the incumbent. The Polish market obtained new operators via vertical integration with a significant competitive presence of a governmental operator. Inaugurating Finnish market is identified as a combination of these two. Therefore, it is easier to understand why new entrants are not operating in the Finnish market.
Originality/value
The research contributes novel, first‐hand data to the subject, which earlier have been studied mostly via second‐hand data and literature analyses.
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Mahfuzur Rahman, Moshfique Uddin and George Lodorfos
Foreign market entry is considered as a key strategy to grow and survive over longer period of time for small and medium enterprises (SMEs). The decision to enter a foreign market…
Abstract
Purpose
Foreign market entry is considered as a key strategy to grow and survive over longer period of time for small and medium enterprises (SMEs). The decision to enter a foreign market is not a straightforward story. Considering resource limitation, SMEs need to analyse the key barriers to entry in foreign markets very carefully. The purpose of this paper is to identify these barriers for the SMEs in a developing country.
Design/methodology/approach
This study has used primary data collected through questionnaires from 212 Bangladeshi SMEs. A mixed method data analysis technique is used to analyse the firms both from micro- and macro-levels. Following the running example-based case study approach, this study has developed and validated a partial least square-based structural model to assess the key barriers to entry in foreign markets.
Findings
This study has identified the key socio-economic barriers faced by the SMEs in a developing country to enter in foreign markets. It has successfully framed the socio-economic barriers to enter in foreign markets for Bangladeshi SMEs as a second-order hierarchical model.
Originality/value
It is often believed that foreign market entry is more affected by social barriers as explained by the existing theories including the Uppsala model. This study, however, revealed that the international market expansions of SMEs in developing countries are more sensitive to the economic barriers.
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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.
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.
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EKENE I. EZULIKE, JOHN G. PERRY and KAMEL HAWWASH
This paper reports early results of a study of construction contractors and their experiences of the PFI market. Utilizing material from semi‐structured interviews with three…
Abstract
This paper reports early results of a study of construction contractors and their experiences of the PFI market. Utilizing material from semi‐structured interviews with three categories of construction contractor, small, medium and large, consideration is given to the barriers to entry which contractors face when approaching the PFI market. The paper highlights six barriers of entry: lack of appropriate skills; high participation costs; high project values; high risk; lack of credibility and contacts; and demands on management time. These barriers affect the three categories of construction contractor in different ways. The findings suggest that the larger the contractor, the more able it is to overcome these barriers and to compete in the PFI market. The findings also suggest that certain barriers to entry will decline as the industry matures, whilst others will remain.
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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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Angels Niñerola, Maria-Victoria Sánchez-Rebull and Ana-Beatriz Hernandez-Lara
The purpose of the paper is to analyse the entry mode choice of the Spanish companies in China, the factors that influence it and the barriers that they found.
Abstract
Purpose
The purpose of the paper is to analyse the entry mode choice of the Spanish companies in China, the factors that influence it and the barriers that they found.
Design/methodology/approach
A qualitative approach is used by interviewing the partners of management consulting firms (MCFs) specialised in internationalisation processes in China.
Findings
The decision on the entry mode choice depends on whether the firm has incentives for investment with a partner rather than the size or the international experience of the board and the top managers. The barriers faced by Spanish companies in China are related to legal issues, bureaucracy, culture, language, trust and human resources.
Practical implications
Companies must have a differential factor to succeed in China and use a legal form that lets them to protect this advantage regardless of the entry form chosen. MCFs pointed out the need to collaborate with local people and to rely on a management team capable of overcoming the barriers.
Originality/value
One of the major contributions of this study is the methodology, as the view of the consultants in the internationalisation process of companies had not been studied before.
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