Entry Barriers of Global Marketing

Other areas that affect new entry into a market include capital requirements, economies of scale, and brand identity. All of these factors have been discussed to some degree under other

If it is easy for markets to enter the retail business, it will result in an increase of competition. However, there are factors that limit the threat of new businesses entering the market known as barriers to entry, consisting of obstacles that will make it much harder to enter the particular industry.

simplicity of market entry: Advances in telecommunications, computer technology and transportation have made entry into foreign markets by

Barriers to entry - Sunk cost, technology, economies of scale, limiting pricing and brand loyalty of incumbents can all be barriers

„« Barriers to entry are typically high, it requires a very large amount of money and expertise to enter the industry. The industry is consolidating not growing.

* Barriers to Entry. A number of factors allow a pharmaceutical manufacturer to act as a

It has been presented by several researchers that the barriers to entry are significantly higher for SMEs than for bigger firms. The fundamental underlying assumption embraced by researchers is that SMEs regularly lack resources and capacities that confine the likelihood to capture business opportunities. In the meantime, Fill states that these barriers alone "are not enough to act as preventative measures to stop the firm entering and progressing through the various stages of internationalization". In any case, the target to comprehend these imperatives and to propose proper political measures has pulled significant consideration of researchers. Quite, some researchers recognize "Exogenous" or "Endogenous" barriers to entry. Exogenous barriers are identified with the fundamental market situations and firms are not ready to control these barriers. Then, endogenous barriers are made by incumbent firms through their techniques and market conduct (Korsakiene,

Barrier of Entry power is medium. The primary reasons are because of the issues with regulation, capital requirements, and economies of scale. To open up a new drug store will cost high amount of money and it also depend the type of locations.

One barrier to entry in a market is research and development. Heavy investment into research and development from large firms can deter other firms from entering into a market. Research and development also goes into developing new products

Imposing barriers is a policy passed by the government to discourage imports from the foreign countries. Since every government has a responsibility to safeguard the wellbeing of its people, it is very importation for government to quickly take care of situations where the country is not necessarily profiting from international trade and take required actions as quickly as possible. Restrictions on overseas companies are tend to protect country’s own interest. There are so many reasons why sovereign government impose barriers. Some reasons are as follows.

3.5 Barriers: When entering a new country, there will always be several barriers along the way. It is best to be aware of these barriers prior entering the market. The business executives in China perceive advertising effects as the most important entry barrier and capital requirements as the least important. When to enter a new market is also one of the critical decisions that international companies must decide on. ( Karakaya, Stahl, 1989). Other more obvious barriers include; language barriers, time difference, cultural differences, and currency rate.

Entry strategy is about the decision to enter which foreign market, when in what scale and regarding the choice of entry mode. In our case we have already decided to enter the UK market and offer our products to a selected niche initially. It is the case of entry mode we should address in this chapter.

By taking a closer look into the different types of international business, it is helpful to first define the two major categories. All types of international business are sub-categories of equity and non-equity entry modes. These are different in their commitment level of spending resources, which is extremely difficult to transfer to other business units. Therefore, to choose the correct entry modes to other countries is one of the most critical strategy decision of a multinational enterprise (Decker and Zhao, 2004, p.1). In addition, the risk as well as the control is a major difference. The equity entry modes require more investments and are therefore riskier. However, the companies using an equity entry mode have more control over the

The decision for a mode of entry can depend on many different aspects. This research has been focusing on the cultural side of the entry mode decisions. The conventional point states that

Dale K. Osborne. The Role of Entry in Oligopoly Theory. The Journal of Political Economy, 72(4), pp. 396-402.