Forms of Entry
Entry could take place in different forms –An entrant may be a brand new firm
分外近义词–An entrant may also be an established firm that is
diversifying into a new product/market
The form of entry is important when we analyze entry costs and strategic respon to entry by the incumbents
Forms of Exit
A firm may simply fold up (PanAm)
A firm may discontinue a particular product or product group (Sega leaves the video game hardware market
A firm may leave a particular geographic market gment (Peugeot leaves the U. S. market)
Evidence on Entry and Exit
黑山峡
Study by Dunne, Roberts and Samuelson (DRS) of entry and exit in different industries in the U.S. found that
–Entry and exit were pervasive and the rates of
拾稻穗entry and exit varied from industry to industry
世界著名城市–Entrants and exiters were smaller than the others –Most entrants do not last longer than 10 years
and tho that do grow precipitously
DRS Findings on Entry and Exit
Over a five year horizon, a typical industry experienced 30 to 40 percent turnover
Conditions in an industry that encouraged entry also fostered exit
王者荣耀怎么投屏Only 5 to 10 percent of entrants were diversifying firms
有氧运动和无氧运动的区别DRS Findings on Entry and Exit
Unlike new entrants, diversifying firms built plants on the same scale as incumbents理发
Diversified incumbents rarely clo a plant permanently (2 to 3 percent of all exits)
Plants clod by diversified exiters were approximately twice the size of other exiters’plants坚持文化自信
