market exit


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market exit

the exit from a MARKET of an established supplier. Market exit constitutes a major BUSINESS STRATEGY decision, reflecting a strategic initiative on the part of a firm to reshape its product/market positioning. Such exit occurs largely in response to a sustained LOSS-making situation or poor PROFIT rate or low perceived growth potential. Successful exit requires the firm to overcome any BARRIERS TO EXIT. See DIVESTMENT.

market exit

or

exit

the withdrawal from a MARKET of a firm or firms. In the THEORY OF MARKETS, a firm will leave a market if it is unable to earn a NORMAL PROFIT in the long run. Firm exit plays an important role in removing EXCESS CAPACITY and reducing total market supply.

Because of various BARRIERS TO EXIT, however, firms may be slow to leave a market even when faced by persistently adversetrading conditions. See alsoLOSS, AVERAGE COST ( SHORT RUN), CONTRIBUTION.

References in periodicals archive ?
We define a market as experiencing a significant change in market structure as the result of market entry, market exit, or a merger if the entry, exit, or merger event directly affected at least 5% of the retail outlets in the market.
Furthermore, we assume that in differing macroeconomic environments different decisions of the firm's management prove as decisive drivers of firm market exit. In our analysis we distinguish between decisions of managers that impact only the quantities of employed inputs in relation to produced quantities of outputs, i.e.
The problem of too-big-to-fail is one of market exit and market power.
Their results suggest that acute health shocks are associated with labor market exits for older American men but not women.
If not-for-profit agencies place more value on serving the community than profits, they may not engage in selective market exits under HHC.
The insurer market will definitely become less diffuse through consolidation (and market exit).
In turn, the deficit in the fiscal 2011 quarter was fueled by several special items, including noncash goodwill and intangible asset impairment charges of $210 million, or 99 cents per diluted share, after tax; store closure and market exit costs of $29 million, or 14 cents per share; and severance and labor buyout costs of $13 million, or 6 cents per share.
"Operating margins for a number of smaller operators would be eroded to the point where market exit was almost inevitable, which could lead to two-fifths of UK consumers migrating to the grey or black market, where firms would still be able to target the UK market."
The conclusions invite the member states to raise the effective retirement age and labour market exit age by restricting early retirement schemes and adapting pension entitlement to life expectancy.
2009) above and beyond market competition, and thus may shift facility decisions of market exit.
The final push for New Jersey legislation allowing credit unions to receive municipal funds may not come until September, but CUs were making their case about filling a void left by the market exit of JPMorganChase regarding $500 million in deposits.
While the responses of national governments, which are discussed in each chapter, show variability, there is unequivocally an upswing in efforts to curtail early labour market exit and to extend paid working lives, what the authors refer to as the move from early retirement towards 'active ageing.'