market entry

market entry

the entry into a MARKET of a new supplier in the form of either a GREENFIELD operation (i.e. an additional supply source) or the MERGER with, or TAKEOVER of, an existing supplier. Market entry constitutes a major BUSINESS STRATEGY decision, reflecting a strategic initiative on the part of a firm to develop, or reshape, its product/market positioning. Such entry occurs largely in response to the perceived long-run profit potential of the target market, which in turn is importantly influenced by the size of the market and its perceived growth potential, both with respect to the expansion of total primary demand and particular market segments. Successful new entry requires the firm not only to overcome any initial BARRIERS TO ENTRY, but also to develop a long-term strategy for establishing and sustaining COMPETITIVE ADVANTAGE over rival suppliers. See MARKET SYSTEM.

market entry

the entry into a MARKET of a new FIRM or firms. In the THEORY OF MARKETS, entrants are assumed to come into the market by establishing a new plant, thereby adding to the number of competing suppliers in the market (see GREENFIELD INVESTMENT). New entry into a market occurs when established firms are earning ABOVE-NORMAL PROFITS. The entry of new firms plays an important role in enlarging the supply capacity of a market and in removing above-normal profits. In practice, new entry also takes place through TAKEOVER of, or MERGER with, an established firm.

Most markets are characterized by BARRIERS TO ENTRY, which impede or prevent entry, protecting established firms from new competitors. See CONDITION OF ENTRY, POTENTIAL ENTRANT, CONTESTABLE MARKET, PERFECT COMPETITION, MONOPOLISTIC COMPETITION, OLIGOPOLY, MONOPOLY, LIMIT PRICING.

References in periodicals archive ?
Figure 21: Generic erosion of respiratory disease brands in the US in the 2 years following generic market entry in the US, 2004-08 51
This study offers an invaluable insight into how this opportunity is unfolding, who is driving the market and examines the successful business models along with the adoption of market entry strategies.
Invest in your stakeholders - Leaders who keep stakeholders informed and inspired succeed at new market entry.
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In addition to producing the industry's principal benchmarking, sizing and opportunity studies, the company assists clients in evaluating telecommunications opportunities for successful investment, market entry and long-term planning.
The Company intends to accelerate its Business Development platform by using its expertise in capital formation, strategic growth and public market entry to the benefit of its eligible portfolio companies.
This report was designed to give anyone interested in investing in the China film market a clear understanding of the current market situation and status in an effort to assist in the development of effective market entry strategies and investments within its sub-sectors.
Through case studies of five international online education providers, this report explores the market entry strategies and business approaches that have led to their success in China.
USPRwire, Thu May 18 2017] Key Findings SDI's "The Angolan Defense Industry - Market Entry Strategy to 2020: Market Profile" is an essential source of information covering the market entry strategy into the defense industry in Angola.
Business Development Opportunities and Market Entry Challenges in Latin America
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