Strategic Management / Strategy Formulation Unit 3 Ip

Market Entry StrategyIntroductionCompanies in the manufacturing as fountainhead up as the service found sector pack been seeking to take in themselves in mass as well as receding trades in to attain organize-back agent advantage which allows them to usurp a large percentage of the market placeplace handle and effected themselves as pioneers in the industry . However it has besides been argued that the youthful rangers in the market who enter the market long later the first movers are the ones who are at an advantage as they hand over an established market and technology to aid them in their business operations and set upThe provides exploration into the concept of the first mover advantage and the late mover advantages , and also aims at highlighting the salient features and benefits of these two strategies . The best choice of the market entering outline is depicted under the various set a business may decide to enter a unseasoned market or launch a confusable productFirst Mover Advantage , and its costs and benefitsFirst mover advantage takes channelise basically when the lodge decides to launch a completely newly product and creates a new market for its products .

The first mover , according to recent theory , can expect to have its market locked up because consumers leave alone be locked in , since consumers will face a high switching cost to move to second and later comers (McKenzie , 2001 ) This requires extensive spending and investment in terms of technology development , acquisition of technology , vista up of the production and disbursement faculties as well as the research and development costs for developing a new product Aside from the costs for marketing and advertising of such(prenominal) products is also very extensive as the market has to be introduced and made aware of the products , therefore creating a need for the productThe benefits unless that are available to connection when opting for the first mover based market institution strategy include control on the regulation of the market and domination in the market in terms of the pricing of the product . The company is able to set the standard for operation , service level agreements as well as the product itself in the market . Moreover the company can lead and set the price as well as attain a higher market share for the product , which can result in generation of kinky profitsLate Mover Advantage , and its costs and benefitsAnother market entry strategy which is much debated about is the late mover based market entry strategy . Through this strategy the company enters the market after one or more people have already started offering the product in the market . In such a case the product launched by the company is not new in fact it is often a me-too product , while sometimes the product can also have significant differentiation in terms of functionality and utilization . The costs that are related to the late mover entry strategy include the regulation of the price and the service step , and standards by the early...If you want to get a full essay, raise it on our website: Ordercustompaper.com

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