Market Competition Timing and Risks while entering or exiting a market - Essay Example

Comments (1) Cite this document
Summary
The paper tells that a firm needs to monitor the market’s latest trends as when to enter or exit the market. Timing is one of the major reasons for the new products success or a failure in a way that a firm can have a first mover advantage and can benefit the revenues before any competitor enters into the market…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
Market Competition Timing and Risks while entering or exiting a market
Read TextPreview

Extract of sample
"Market Competition Timing and Risks while entering or exiting a market"

Download file to see previous pages The researcher states that for example, Amazon.com started its business as an online bookshop but as gradually the demand for the grocery items had increased, Amazon.com adhering to that demand and started its first online grocery shop. As we see in the case of Monopoly where there are no competitors and therefore firms set a price to maximize profit and gain the first mover advantage. Whereas in a perfect competition there are no entry and exit barriers so the role of time in deciding the entrance or exit from the market is minimal and perfectly competitive firms are free to enter and exit an Industry and so in the case of Monopolistic competition in which there is a relative freedom of entry and exit out of industry but a difference between those two terms is that in Monopolistic competition the firms are not ‘perfectly’ mobile but they remain unrestricted by any government rules and regulations, start-up costs or any substantial barrier to entry which is the total opposite of Oligopoly in which there are significant barriers to entry where time plays a major role in determining the entry and exit from the market. A firm has to evaluate several factors in order to determine the risks of new entrants and the reasons to exit a market which include “economies of scale, product differentiation, capital requirements, access to distribution channels, cost disadvantages independent of scale and government policies”...
The term Economies of scale refers to increase the production of a commodity due to which the per-unit cost is of a commodity is reduced. This will create a risk for the new entrant firms in a sense that they would have to produce a larger quantity at a lower price. Economies of scale encourage the firms to exit the market that cannot produce the required quantity and it deters the smaller firms from entering into the market. These bigger firms forces the new entrants to either come in on a large scale or to accept a cost disadvantage (Porter, 1979). Product differentiation is a risk for entering into the market because it requires incurring expenditure and great deal of money to make the product differentiate among its competitors. Another type of risk is capital requirement where new entrants are required to invest larger amounts to compete efficiently in an industry; particularly if the capital is required for the research and development. The initial cost to operate can be so large that it restricts all but the larger firms. The capital is not only required for fixed facilities but also for the inventories and absorbing start-up losses. While bigger firms have the financial resources to tap any industry but the huge capital investments in industries such as mineral extraction and computer manufacturing has major risks and limits the pool of entrants. Even the big firms do compete in this trio there is still no guarantee for success. Access to distribution channel is another type of risk in which a firm needs to obtain distribution for the channel and the distributors are not likely to deliver the product until they are paid good incentives and that will lead to profit reduction for the firm. For example, a new food product enters ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Market Competition Timing and Risks while entering or exiting a market Essay”, n.d.)
Retrieved from https://studentshare.org/marketing/1395209-market-competition-timing-and-risks-while-entering-or-exiting-a-market
(Market Competition Timing and Risks While Entering or Exiting a Market Essay)
https://studentshare.org/marketing/1395209-market-competition-timing-and-risks-while-entering-or-exiting-a-market.
“Market Competition Timing and Risks While Entering or Exiting a Market Essay”, n.d. https://studentshare.org/marketing/1395209-market-competition-timing-and-risks-while-entering-or-exiting-a-market.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
lo
lolitahilll added comment 5 months ago
Student rated this paper as
Wonderful work done on the "Market Competition Timing and Risks while entering or exiting a market". I think it is the best text I have seen so far.
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Apple Inc.: Market Analysis & Competition
...?  APPLE INC - iDESK: MARKET ANALYSIS & COMPETITION [Insert [Insert This paper covers a brief yet comprehensive industry analysis of the market of iDesk – an invent product of Apple Incorporation. IDesk can be called the larger version of iPad. The target market of iDesk is set to be all Post-Secondary education institutions with faculty of Arts and Design and all the decision makers associated with making the purchase and installation of iDesks in classrooms for these institutions. Preferably, the Deans of respective faculties would be considered the audience who can actually be contacted. Apart from this, the industry’s competitiveness will also be gauged according to Porter’s Five Forces Model for competition. Major competitors... . This...
2 Pages(500 words)Research Paper
Nespresso Entering Kiev Market
...? Nespresso Entering Kiev Market Stundent’s Institute’s This report is basically a marketing plan designed for Nespresso entering Kiev Market. This report encompasses the purpose of the plan, situation analysis etc. In this report it has been discussed what kind of hurdles Nespresso may face while entering Kiev, Ukraine, which is a new and international market. It also includes target market, brand positioning and marketing mix. The report also encompasses market development which shows how Nespresso will survive and struggle. Finally, there is an...
7 Pages(1750 words)Assignment
Introduction of market timing theory (capital structure)
.... For instance, research shows that in 2008, the company registered significant amounts of strengths despite the recession. The organisation was successful because its management did a tremendous job of ensuring that its stocks hold up during the difficult times; therefore, it was able to make enough money while other organisations were struggling. In 2007, Apple was named as the Business Week most successful and innovative firm. Despite the economic challenges, the company started unveiling its products such as the iPod and Itunes. The management was successful because it focused on producing simple products and ensuring they market their elegant and aesthetic designs widely; therefore,...
3 Pages(750 words)Essay
Market Risks
...The main risks that firms face when investing in a emerging market is the loss in the value of their investment and the risk of frauds that are foundvery often in these markets. For example, Merrill-Lynch and the Government of USA outsourced many of their operations to an Indian firm "Satyam". However, recently the firm was charged for litigation and their co-founder was arrested. These risks are very common in emerging markets as government has little control of so-called "Big Businesses". (New York Tmes, 2009). Not only this, loss of investment is another major risk in these markets due to their...
2 Pages(500 words)Essay
Entering an international market
...the global markets by positioning their products strategically. A recent study of the US and European companies revealed that 75 percent were taking up the above strategic reorganization in order to stay competitive and staying competitive was considered the single most important external issue on their agenda. Any international marketing strategy can be based on five major modes of market entry viz.exporting ,internet, contractual agreements, strategic alliances and foreign direct investments(FDIs).Risk element in entry strategy can be decided by the amount of equity which may be worked out in the entry approach.(Gaba et...
16 Pages(4000 words)Essay
Paterns of market competition
...their economic development or not is a big question mark for economists in the light of the recent developments that have taken place in the Asian markets. With the governments of developing countries actively seeking our FDI's for their countries there is a large disagreement amongst economists and development agencies whether FDI flows are to some extent determined by the effectiveness of host state legal systems .The main players in the risks associated with FDI's are the host states, foreign investors and those engaged in development assistance and theorising(like the World bank.) There has to be an effective use of legal and economic reforms which balance domestic commercial and non-commercial...
12 Pages(3000 words)Essay
Entering HVAC Market
...of the MBO approach. The Management By Objective approach:: Managerial Planning and Goal Setting. -Daft and Marcic 2008 Three approaches might be considered while developing a strategy to enter the new market of Eco-Friendly HVAC Systems production: The Position approach, Resources approach or the Opportunistic approach. Each approach has its pros and cons. In the Position approach our firm might decide to create its own place in the market which would ideally be the market leader's position and defend it. It has a continued duration of advantage with profitability being the major strategic goal. The risk involved in this approach is...
12 Pages(3000 words)Assignment
Entering english market(from poland)
...incentives for the alternative fuel developers. This area can be a major boom for a company like “Szarlat” to enter into highly awaited England market. Market for these bio-fuels is very promising according to current requirement. in England. Bio-fuels are above an edge when compared to other degradable fuels as they are no-pollutants. When market is looking for a product of this kind the business proposal has to be forwarded to the authorities The project can be implemented with the active support of government authorities. References: Green fuel challenge, A proposal from industry http://www.biofuels.fsnet.co.uk/challenge.htm Evan Davies, BBC Economic editor,...
2 Pages(500 words)Essay
U06d2 Market Competition
...Running Head: COMPETITION IN THE HEALTH CARE INDUSTRY u06d2 Market Competition Submitted by: XXXXX Number: XXXXXX of XXXXXX Competition is a major part of every industry irrespective of whether it is a manufacturing, retail, finance, food or even the health industry. Considering the health care industry, it can safely be said that the industry is one of the most difficult to market. The competition in this industry is intense and the numbers of people involved in this industry are numerous (Moseley, 2008). The main stakeholders of this industry include the patients, doctors, and nurses, employees of the health care sector and the...
2 Pages(500 words)Essay
Stock market competition
...: Insomniac Press. Adu, B., & Tsiyon, U. (1982). Causes of risk of stocks traded on the Toronto Stock Exchange. Berlin: Wissenschaftszentrum Berlin. Cleary, S. (2009). Canadian Securities Exam Fast-Track Study Guide. Vancouver: Simon Fraser University. Dawn, A. (2003). Invest Now. New Jersey: iUniverse. Gillen, J. (2009). The Key to Speculation on the New York Stock Exchange. Philadelphia: Jessica Kingsley. Griffiths, A. (2005). Count Yourself. New York: Springer. Jeddi, M. (2005). The impact of the new issue of equity warrants on the Toronto Stock Exchange- listed stocks. Ottawa: Library and Archives Canada = Bibliothèque et Archives Canada. Learn2suceed, (2012). Stock Market Investing for...
8 Pages(2000 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Market Competition Timing and Risks while entering or exiting a market for FREE!
logo footer
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us