Competitive Dynamics of Market Entry: Scale and Survival
Market entry is the essence of strategy and is largely viewed as a dichotomous event: entry or no entry. What has not been acknowledged is the uniqueness of each market entry. Our study highlights the scale of market entry in the context of multipoint competition. We assert that entry scale varies b...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Editura ASE
2017-06-01
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| Series: | Management and Economics Review |
| Subjects: | |
| Online Access: | http://mer.ase.ro/files/2017-1/10.pdf |
| Summary: | Market entry is the essence of strategy and is largely viewed as a dichotomous event: entry or no entry. What has not been acknowledged is the uniqueness of each market entry. Our study highlights the scale of market entry in the context of multipoint competition. We assert that entry scale varies based on the risk of market incumbent retaliation. Theory suggests that when risk associated with retaliation are low, firms enter with large scale and when associated risks are high, firms enter with low scale. Further, survival is viewed as dependent on following theory. We argue and find supporting evidence that firms behave in the opposite manner and do so to their own benefit, thereby revealing a unique discrepancy between theory and practice among 75 product market entries by 27 firms. |
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| ISSN: | 2501-885X 2501-885X |