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Market Entry and Market Partition

In: Managerial Decision Making

Author

Listed:
  • Jeffrey Yi-Lin Forrest

    (Slippery Rock University)

  • Jeananne Nicholls

    (Slippery Rock University)

  • Kurt Schimmel

    (Slippery Rock University)

  • Sifeng Liu

    (Nanjing University of Aeronautics & Astronautics)

Abstract

This chapter, which is based on (Forrest et al. 2017), investigates market entry of small firms and market characteristics that motivate such firms to penetrate markets. By emphasizing firm scales, this chapter provides a dynamic picture of entrant-incumbent relations and conditions on how, when, and where small entrants will penetrate markets. Conceptually, this chapter generalizes and unifies both resource partitioning and mutual forbearance theories into one with much increased utility for applications. It is shown that (1) penetration into markets is possible only when smaller entrants solidify large incumbents’ positions while target niches large incumbent firms cannot occupy, (2) market evolution can be measured by either integration or modularity of the large incumbents, etc.

Suggested Citation

  • Jeffrey Yi-Lin Forrest & Jeananne Nicholls & Kurt Schimmel & Sifeng Liu, 2020. "Market Entry and Market Partition," Springer Books, in: Managerial Decision Making, chapter 0, pages 65-82, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-28064-2_4
    DOI: 10.1007/978-3-030-28064-2_4
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