The market attractiveness --> The choice of the market-->The Choice of entry type--> Entry strategy
Choice of the market: 1) the market attractiveness 2) market barrier
波特五力模型
Structure entry barriers
structural barriers: 1) the nature of the industry 2) the position of incumbent within the industry
control of resources : nature resource, supplier capacity, patents, distribution channels, timing (for airline), government mandate license
economic scales and scope
Marketing advantage of incumbent: customer's loyalty for brand, switching cost
strategic barriers: 1) incumbent's aggressive actions 2) intended to keep the new entrant out of the industry
offer long-term contract to customers; over branding;
When we consider whether we shall attack the new entrants, we shall also consider the NPV.
Entry Strategy
Commitment: a creditable commitment of the entrant stay in the market may stop the retailing of the incumbent
1. High suck cost investment (establish some factory only for the product, R&D, Advertising)
2. Exit from other strategy segment to focus on the new entry
Value Chain reconfiguration
一开始进入市场的时候，以廉价低端品进入。站稳脚跟后，开始产品升级。
Judo Economics : 低价策略进入，若对方发现阻止我方进入成本高于我方拿走的市场，对方则不会反击。
Niche Market
Deterring a market
control of key resources, economic scale, MKT advantage, Commitment
Limited pricing (only works for incomplete information)
- Keep low pricing to signal the potential entrant (low MKT profit, low incumbent cost)
Predatory pricing 倾销
Pre-emption (先占策略）
1. 过度投资，把各种成本降到最低，让潜在竞争对手望而怯步。
2. 横向发展多条产品线，把市场供应端选择填满
3. 在地理位置上多点布局，把市场摊位占满
