After discussing about the diabetics and diabetic foot ulcer related diseases and current treatments we also discussed about Diabetic boot co. and their product over view. Now we are going forward on literature review about foreign market entry barriers of products in new markets. We will be finding insights and different barriers associated with markets as per each prominent authors.
New market entrants who having an adjusting phenomena is an important factor in the economy of each countries. It brings changes in the society into a wide range, whichever industry you see. Entrants with new ideas and upgrade values while entering market change the better social life barriers and helps society to enter the next level. Entry is only made by companies when they see their profit margin above the long run competitive level. While entering, most of the profit got decrease to long run competitive level margin. These both results in an allocative and dynamic efficiency in market. However, several mechanisms can prevent firms from entering the market. In other words, there can be barriers to entry that harm the allocative and dynamic efficiency and are therefore detrimental for industry dynamics and economic welfare. From this perspective, lowering the barriers to entry or preventing these barriers for the easiness for entrants can results in economic welfare.
In this chapter we identify the barriers which affects the entrants of any size to enter the market, different barriers classifications and how it matters along with different industries and possible solutions to overcome these barriers in general terms.
While looking back in the past literature about barriers to entry in industrial organizations, Bain (1956) is the one who highlighted about it. He mostly focuses on the consequences of the entry barriers. As per the traditional view in industries, an entry into a new market is induced by the level of excess profit of equilibrium. In an economy the entrants are considered as agents of change (Audretsch, 2001). Due to the threat of new entrants many existing firms were forced to introduce new products and process in the market. In this way the small companies are not considered as a copy of big ones, instead they are considered as an agent of change in the society through innovations. Because of these features entrants are important for their dis equilibrating influence (Audretsch and Mata, 1995). This ensure that small entrants are important and dynamic for market and competitors.