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Barriers to entry and market strategy: a literature review and a proposed model
Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. (Internationell strategi)
2009 (English)In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 21, no 1, p. 64-77Article in journal (Refereed) Published
Abstract [en]

Purpose – To review previous research and to propose a model for the impact of barriers to entry on the market strategy of an entrant firm, where product/market scope and product differentiation are central strategy components. Questions: What is the impact of barriers on market strategies of entrants? Are early and late entrants affected in different ways?

Design/methodology/approachA model and propositions are developed based on a review of previous research. The model applies the contingency perspective and company cases exemplify the model.

Findings – It is proposed that a firm that enters a market late and faces extensive barriers would choose a broader product/market scope and differentiate its products to a larger extent than an early entrant. It is also proposed that incumbents’ market strategies indirectly affect the market strategy of an entrant firm as incumbents’ market strategies interact with barriers, and the effects are due to entry timing.

Implications – The study contributes theoretically as it extends current knowledge of the impact of barriers to entry on strategy. Management of entrant firms are advised to strive for a fit between barriers and market strategy and consider the propositions.

Originality/value – The model and the propositions concern barrier effects on two key components of the market strategy of an entrant firm: product/market scope and product differentiation. Another important value is that the model accounts for interactions between incumbent strategies and barriers to entry, and effects on the market strategy of an entrant firm.

Place, publisher, year, edition, pages
Emerald Publishing Group , 2009. Vol. 21, no 1, p. 64-77
Keyword [en]
Barriers to entry, Market strategy, Entry timing, Competitors, Incumbents
National Category
Business Administration
Research subject
Economy, Marketing
Identifiers
URN: urn:nbn:se:vxu:diva-6491DOI: 10.1108/09555340910925184OAI: oai:DiVA.org:vxu-6491DiVA, id: diva2:282535
Available from: 2009-12-21 Created: 2009-12-21 Last updated: 2017-12-12Bibliographically approved

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Pehrsson, Anders

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf