Barriers to Entry and Exit (Symbian)

1376 Words Oct 12th, 2008 6 Pages
Market entry and exit constitute major business strategy decisions reflecting a strategic initiative on the part of a firm to develop, or reshape, its product or market positioning
Barriers to entry are obstacles in the way of firms attempting to enter a particular market, which may operate to give established firms particular advantage over investment. They are factors that allow incumbent firms to earn positive economic profits, while making it unprofitable for new comers to enter the industry. Barriers to entry may be structural or strategic. Structural entry barriers result when the incumbent has natural costs or marketing advantages or benefits from favorable regulations. Strategic entry barriers result when the incumbent aggressively
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In this case, even though Microsoft has been very familiar with what the Symbian OS is trying to offer, giving mobile phones the ability to function like that of a personal computer, including e-mail, web browsing, electronic messaging and digital photography, it would be costly for them to develop their windows mobile software in that direction with the bulk of the mobile phone manufacturing market share in the hands of the companies using the Symbian OS as a base for their products.
This phenomena, however, was only seen for a short period of time as Microsoft was both huge in both technological advances and financial capabilities. With WM6, they successfully integrated into the mobile phone market, incorporating touch-screen interface for their operating systems and working with major business phone manufacturers such as HTC and LG. As such, Microsoft hopes that the industry would develop the way they did for the computing industry.
Thus far, we do not really see a shift in that arena, with Symbian having tied up virtually the entire market, and also the ‘3-3.5G era’ in its infant stage, only time will be witness to whether the cellular market moves in the same direction. o Marketing Advantages in incumbency
As mentioned above, major mobile phone manufacturers have come together, developing the Symbian OS as a barrier to entry to Microsoft. In that sense, with the major companies holding bulk of the market share, they stand to gain many marketing advantages.