Many firms enter new markets each year in search of growth, but
only a handful succeed. A major reason for failure is
underestimation of market entry barriers and competitors' reactions
to market entry. Thus the objective of this book is to help
marketers make more informed market entry decisions. To that end,
the authors provide a comprehensive discussion of market entry
barriers in both domestic and international markets, as well as
strategies for overcoming them.
Chapter 1 provides an overview of the origins and nature of
barriers, as well as a review of the existing literature on the
subject. Chapter 2 concentrates on the differences between barriers
in consumer and industrial markets in both early and late market
entry situations. Barriers to entry in international markets are
explained in Chapter 3. The timing of market entry is discussed in
Chapter 4, where it is demonstrated that the nature of barriers
changes in response to different stages of the product life cycle.
Chapter 5 explores the relationship between exit and entry barriers
and makes the case that the fear that market exit might be costly
often plays an important role in market entry decisions. Chapter 6
examines the vital role of managerial consensus regarding market
entry decisions. Chapter 7 explores profitability and other factors
involved in early versus late market entry decisions. Strategies
for overcoming barriers are covered in Chapter 8, and the book
concludes with two Appendices that provide detailed market entry
simulation exercises for domestic and international market.
General
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