Barriers to Entry and Market Entry Decisions in Consumer and Industrial Goods Markets

1989 ◽  
Vol 53 (2) ◽  
pp. 80-91 ◽  
Author(s):  
Fahri Karakaya ◽  
Michael J. Stahl
Keyword(s):  
Product Differentiation ◽  
Market Entry ◽  
Capital Requirements ◽  
Entry Barriers ◽  
Barriers To Entry ◽  
Customer Switching ◽  
Industrial Markets ◽  
The Cost ◽  
Model Market ◽  
Entry Decisions

The authors test six market entry barriers in consumer and industrial markets: cost advantages of incumbents, product differentiation of incumbents, capital requirements, customer switching costs, access to distribution channels, and government policy. They model market entry decisions of 137 executives in 49 major U.S. corporations with a decision-making instrument consisting of 32 market entry opportunities. Each respondent's decisions are modeled by regression analysis. The differences in the importance of the six market entry barriers for early and late entry in consumer and industrial goods markets are investigated. The results indicate that marketing executives consider all six barriers in making market entry decisions. The cost advantages of incumbents are considered to be the most important of the market entry barriers. Major differences also are discovered among the other five barriers. Furthermore, the importance of the barriers differs between consumer and industrial goods markets.

The analysis of barriers to entry into the pharmaceutical market of Ukraine

2021 ◽  
pp. 6353-6358
Author(s):  
Elena Shuvanova ◽  
Olha Rohulia
Keyword(s):  
Market Entry ◽  
Pharmaceutical Market ◽  
Business Strategies ◽  
Entry Barriers ◽  
Competitive Advantages ◽  
Barriers To Entry ◽  
Competitive Situation ◽  
Foreign Companies ◽  
Free Competition ◽  
Legal Nature

The pharmaceutical market of Ukraine is characterized by a tendency to dominate imports over exports, which indicates its economic attractiveness for foreign companies that face various obstacles when entering the market. Entry barriers are understood as factors of an objective or subjective nature that prevent new firms from organizing profitable operations in the industry. The presence and impact of market barriers prove the need for their identification and comprehensive research. It has been established that when entering the pharmaceutical market of Ukraine, there are restrictive barriers related to state policy (for example, licensing, registration of medicines, examination, certification, etc.), barriers due to competition, and barriers of a non-legal nature. The results of the analysis of the competitive situation as a possible barrier characterize the pharmaceutical market of Ukraine as a market of free competition, which contributes to the relatively free entry of foreign manufacturers. Market entry barriers are also caused by anti-competitive behavior such as mergers and acquisitions, unfair competition, informal agreements, and so on. The results of the research can be used in making decisions about entering new markets or market segments for pharmaceutical companies, in forming competitive advantages and business strategies in order to develop potential in the long term.

scholarly journals Employment preservation and textile regulation in early modern England, 1550–1640

2021 ◽  
pp. 1-15
Author(s):  
John H. Gendron
Keyword(s):  
Early Modern ◽  
Recent Literature ◽  
Institutional Structure ◽  
Regulatory Change ◽  
Barriers To Entry ◽  
Glorious Revolution ◽  
Structure Changes ◽  
Local Officials ◽  
The Glorious Revolution ◽  
The Cost

Abstract Much agreement exists among economic historians that an institutional structure which allows for broad participation in a country's economy is conducive to growth. With respect to England's institutional structure, changes that followed the Glorious Revolution of 1688 are given pride of place in recent literature. This article contributes to this literature by highlighting and explaining regulatory change that removed barriers to entry into the country's most vital industry, textiles, in the years between 1550 and 1640. However, although economic historians have tended to explain England's growth-facilitating institutions as arising abruptly through political revolution that placed constraints on the Crown, this article will elucidate change that was protracted, accretive, peaceful, and came through royal institutions. More specifically, this article argues that restrictive regulations, which were widely supported, were removed because Crown and Council, in consultation with local officials, recognized that enforcement would come at the cost of the greater priority of employment preservation.

Market entry decisions in China

2003 ◽  
Vol 45 (3) ◽  
pp. 289-312 ◽  
Author(s):  
David McHardy Reid ◽  
John Walsh
Keyword(s):  
Market Entry ◽  
Entry Decisions

The potential of entry barriers in the context of digitalization

2021 ◽  
Vol 21 (1) ◽  
pp. 128-147
Author(s):  
Aleksey Zazdravnykh
Keyword(s):  
Big Data ◽  
Market Power ◽  
Network Effects ◽  
Economies Of Scale ◽  
Digital Transformation ◽  
Entry Barriers ◽  
Barriers To Entry ◽  
Significant Growth ◽  
Digital Infrastructure ◽  
Market Operation

The article analyzes the practical aspects of the functioning of some barriers to entry in the era of digital transformation of industry markets. It is noted that under the influence of digitalization processes, both positive changes in the mechanism of market operation are recorded, as well as a number of negative circumstances that have become a serious challenge for antitrust agencies. Control of big data, initial investment in digital infrastructure, and broad technological capabilities of digital blocking of users, against the background of powerful network effects and pronounced economies of scale, carry the potential for significant growth in the market power of individual firms. The article substantiates that such trends theoretically pose a significant threat to competition, and can form new types of entry barriers. At the same time, practical arguments are presented that indicate the ambiguity of this position.

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