Entry Of New Competitors Research Articles

Application of Marketing Mix Strategies and the Effect on Market Performance of Motor Vehicle Dealers in Kenya

The environment in which organizations operate is constantly changing with different micro and macro-economic factors influencing the organization’s performance. Coping with the increasingly competitive environment has called on firms to rethink their marketing strategies. The need to respond to market changes on a daily basis, and the difficulty of predicting the direction of such changes means that organizations must strategically focus on their core competences and capabilities. The World Bank report (2015) clearly indicates that motor vehicles imports in Kenya have increased with 2.0% in the year 2015. However, this ratio keeps on changing depending on macro-economic factors such as increase or decrease on imports duty. Entry of new competitors into the market has caused a drastic change not only to the specific companies operations, but also to their products and services in the demanding market. The competition in the markets has created an attention for these companies to review their marketing strategies in order to remain relevant in the market. One of the determinant of performance is marketing mix focusing on the product, its price, its position and how well it is known by its customers. Studies show that application of marketing mix strategies influence the level of sales. However, minimal research exists on this relationship. Therefore, this study sought to establish the effect of marketing practices on market performance of Motor vehicle Dealers in Kenya. The study adopted four major practices namely; product strategies, price strategies, positioning strategies and promotion strategies and market performance as the dependent variable. Porters Five forces model, Resource based view model, stakeholders’ theory and pricing theory were applied to explain the empirical literature. The study area was in Nairobi County, while target population of the study was the 7 major Dealers in cars. The study sampled at least one respondent from each management offices in the marketing department. Therefore, the study target a total of 21 respondents. Data was collected using self-administered questionnaires. Descriptive statistics such as frequencies, percentages, means and standard deviations will be used to analyse the data. A regression model was used to measure and explain the relationship of the study variables. The study concludes that the four strategies namely; product strategies, price strategies, positioning strategies and promotion strategies had a significant effect on performance. The study recommends that to achieve a high output, there is need to utilise all the four strategies as each has a specific contribution to the performance. Keywords: Marketing mix, Product, Pricing, Positioning, Promotion, market performance, motor vehicle dealers DOI : 10.7176/EJBM/11-27-06 Publication date :September 30 th 2019

Train path congestion management: Using hybrid auctions for decentralized railway capacity allocation

Despite the entry of new competitors into the railway market in European countries, the capacity allocation mechanism still relies on the same service priority criteria as before the adoption of 91/440/EEC Directive. Without the implementation of a market-based mechanism or criteria, the current administrative approach of network capacity allocation inhibits further development of competition and especially freight railway transport. In this paper, the application of auctions is limited to a part of railway infrastructure. In view of the specificities of the railway sector and the nature of infrastructure capacity, the following question can be raised: Are there auction mechanisms that reduce the likelihood of collusion and at the same time achieve a high degree of efficiency of capacity allocation? In such a context, this article considers the implementation of hybrid auctions for the purpose of train path allocation. In order to facilitate the implementation of various types of auctions in allocation procedure on railways, this paper develops and models an algorithm for iterative train paths allocation. With the proposed algorithm, the auction outcomes have been determined in a simulation with the objective of comparing the performances of hybrid (two-phase) auctions: Anglo-Dutch and second-price Amsterdam auction with some well-known standard-type auctions: English and sealed-bid first-price auction. The results indicate that hybrid auctions are a better choice in European conditions when railway undertakers are asymmetric, especially if there is a threat of collusion. These results could help an IMs to decide which type of auction mechanism to choose for the railway capacity allocation.

Strategic Responses to Entry in Communications Markets: Evaluating Financial Consequences for Incumbents

In the last few decades, communications markets have undergone several major institutional disruptions. This article examines the relationship between the entry of new competitors and the economic and financial impacts of such entry contingent on the responses made by incumbents. The context is telecommunications local exchange carriers’ territories in the United States, which has served as a laboratory for institutional experiments in the sector. In markets with greater competitive entry, there has been a significant response by incumbents in increasing advertising spending and reducing selling and overhead costs. Enhanced annual advertising expenditures by incumbents have been estimated to be $600 million, and annual selling cost and overhead cost reductions as $1.3 and $2.1 billion. Given responses to advertising spending, additional annual revenues generated would be around $1.7 billion. Competitor entry in incumbents’ markets have yielded the incumbents annual net economic benefits of $4.5 billion, representing increments to profits of over 22% and up to 45%. To test for the robustness of results, the impact of the different types of mergers that have occurred in the sector have been accounted for in detail. The estimates for the entry variables stay consistent. The idea that disruptive institutional changes cause major resource reconfiguration in firms is supported, and results provide insights on an important issue at the confluence of several literatures.

Strategically Giving Service: The Effect of Real-Time Information on Service Efficiency

Problem Definition: The use of real-time information in on-demand services provides agents with access to an unprecedented amount of information about their competitors. We study the impact of the increased availability of real-time information on the behavior of strategic agents and the implications of this phenomenon for service efficiency. Academic/Practical relevance: E-hailing companies provide service via independent contractors; thus, the platforms do not have direct control over the service location of their service agents. Therefore, it is important to understand how sharing real-time information impacts agent behavior and the implications of this behavioral response for the platform efficiency. Methodology: We use data from one of the leading e-hailing taxi platforms in South America to empirically study the real-time reactions of agents to the dynamic entry of new competitors into their service zones. Results: Information about competitors' locations could potentially induce herding behavior (because competitors' actions may convey information about market opportunity) or scattering (because the entry of competitors reduces expected market share and the appeal of a service zone). We find that the net response to real-time information indicating the entry of new competitors in a service zone is an increase in the scattering of agents previously in that service zone. The response is not homogeneous, as some agents are more likely than others to respond to entry. We find that those agents who are more likely to scatter in reaction to the real-time entry of competitors achieve higher utilization. We investigate the consequences of this behavior for the efficiency of service systems. Managerial implications: Our results indicate that although platforms cannot determine the service location of their agents, they can improve the service efficiency through real-time information sharing. However, in order to maximize platform profit and efficiency platforms should treat workers with different sophistication levels.

PMS78 - CHANGES IN THE PRICES OF INCUMBENT TNF-ALPHA INHIBITORS FOLLOWING THE MARKET ENTRY OF COMPETITORS

Before 2009, etanercept, infliximab and adalimumab were the only tumor necrosis factor alpha (TNF-alpha) inhibitors approved by the US Food and Drug Administration for the treatment of rheumatoid arthritis (RA). Since then, three new therapies have been approved for this indication, including: subcutaneous golimumab in April 2009, certolizumab pegol in May 2009, and intravenous golimumab in July 2013. The objective of this study was to assess how prices of incumbent TNF-alpha inhibitors changed in response to the market entry of new agents. We obtained 2005-2017 monthly wholesale acquisition costs for all TNF-alpha inhibitors approved for RA from Analysource. For each month between January 2005 and January 2017, we calculated the annual cost of treating a standard 80kg/1.80m patient with each drug. We constructed an interrupted time-series analysis with a linear model to test how the entry of new agents affected trends in prices of incumbent products. The linear model regressed the annual cost of treatment against a continuous variable for month, two indicator variables for each period after new drug entry (one for April 2009-July 2013, another for July 2013-end of the study period), and the interactions between each indicator variable and the time variable. After the entry of subcutaneous golimumab and certolizumab pegol, the annual cost of treatment increased a 284% faster, from US$69 every month between January 2005 and April 2009 to US$196 every month between April 2009 and July 2013 (p-value for trend change<0.001). After the entry of intravenous golimumab, the annual cost of treatment increased by US$488 every month between July 2013 and January 2017 (p-value for trend change<0.001), a 249% faster than during the previous period. Although increased competition should theoretically drive prices down, we found that prices of incumbent TNF-alpha inhibitors significantly increased following the entry of new competitors.

The strategic national infrastructure assessment of digital communications

PurposePublic policy requires effective identification of the current and emerging issues being faced in industry and beyond. This paper aims to identify a set of key issues currently facing digital communications and reviews their relevance for the strategic provision of infrastructure, particularly within the UK context.Design/methodology/approachThe methodology focusses on taking a horizon-scanning approach to obtaining current information from a range of authoritative decision makers across industry, government and academia. After structuring the issues identified, these areas are explored by a multi-disciplinary research team covering engineering, economics and computer science.FindingsFive key categories were identified including future demand; coverage and capacity; policy and regulation; economics and business models; and technology. The results are reported for both fixed and wireless networks. Shared issues affecting the wider digital ecosystem are also identified including Brexit, connecting remote areas and the degree to which the economics of infrastructure allows for building multiple overlapping infrastructures. The authors find that future demand uncertainty is one of the major issues affecting the digital communications sector driven by rigid willingness-to-pay, weak revenue and an increasing shift from fixed to wireless technologies. Policy must create the market conditions that encourage the entry of new competitors with innovative thinking and disruptive business models.Research limitations/implicationsA limitation of the analysis is that it is quite UK-focussed; hence, further research could broaden this analysis to assessing issues at a continental or global scale.Originality/valueThe value of this paper originates from the breadth of the expert elicitation exercise carried out to gather the initial set of issues, followed by the analysis of this data by a multi-disciplinary team of researchers. The results direct a future research agenda, as many issues are indicative of a lack of existing evidence to support effective decision-making.

Cartels as Defensive Devices: Evidence from Decisions of the European Commission 2001–2010

Abstract Why would an industry that was not colluding yesterday start colluding today? This article distills insights about cartel formation from 41 cases prosecuted by the European Commission between 2001 and 2010. The case studies examine the events occurring prior to the cartels’ set-up. Cartel formation is affected by changes in prices, demand and customer conduct, capacity utilization, increased imports and entry by competitors, as well as events in the legal and regulatory environment of the firms. Yet, none of these factors serves as a good marker of cartel formation when being regarded in isolation. It rather needs to be analyzed how changes in these factors interact and whether they raise the intensity of competition. In this context, factors that are commonly deemed to destabilize cartels, like entry of new competitors or buyer power, are found to actually foster cartel formation.

Internationalization Strategy of Afcons: Planning and Implementation

Afcons, a major Engineering Procurement and Construction (EPC) firm in India, has been engaged in the business of marine and industrial, oil and gas, rail and metro, surface transport, hydro underground, LNG and downstream hydrocarbons. Mr K. Subrahmanian, the Managing Director (MD) of Afcons, was contented with the internationalization efforts of Afcons. He was also satisfied with the work of Afcons carried out in the last few years in the domestic Indian market. Particularly the order book of the marine business, roads/bridges and rail and metro were satisfactorily filled for the next few years. This was gratifying for Mr Subrahmanian as the external socio-economic context for the EPC firm had been challenging. The growth registered by Afcons had come in hard times. But one of the major focus areas for Afcons had been to generate a substantial amount of revenue, profit and number of projects from international clients. The entry of new competitors and the socio-political changes in India during the past decade have made implementation of infrastructure projects difficult. Given this pressure cooker situation in India, it is important for Afcons to internationalize further so that they are insulated from the risks and tumults of the Indian domestic market. This case talks about the nature and extent of internationalization that Afcons had undertaken. Further, it deliberates on the strategic reasons and logic for the contour of international influence regarding the nature and extent of internationalization.

SI NO PUEDES CON TU ENEMIGO, ÚNETE A ÉL: ANÁLISIS DE LAS FUSIONES EN EL SECTOR EUROPEO DE LA TELEFONÍA MÓVIL

Industry maturity usually involves concentration processes as natural reactions towards competition intensification. This is the case of the mobile telecommunications industry. Domestic mergers have increased during the last years. Although existing literature has analyzed concentration processes in other older industries, the more recent industry of mobile telecommunications has received less attention. This study aims to analyze the role of domestic mergers as a competitive mechanism in the long term. We have reviewed all domestic mergers between mobile operators in 43 European markets from 2000 to 2015. After identifying 26 domestic mergers, this study observes that they not only have immediate effects in the market power of participants, domestic mergers also influence the evolution of rivalry in the long term. We observe that domestic mergers slow down the increase of competition that has taken place from 2000 to 2015 as a consequence of factors such as the entry of new competitors and regulators’ intervention.

Brand Building to Deter Entry and Its Impact on Brand Value

Brand valuation methods have traditionally focused on the value a brand generates via its ability to enhance demand and accordingly profitability. However, this paper explores how a brand can generate value for a firm through the ability to deter entry of new competitors. In this respect, we distinguish between a brand's direct effect on demand and its strategic effect on the behavior of rival firms. We investigate this within the context of the U.S. stacked chips category using a dynamic model that endogenizes brand building and entry decisions. We find that up to 63% of a brand's value can be attributed to its ability to deter entry. We find that an increase in industry-wide effectiveness of advertising can decrease the value of a firm's brand because, despite enabling more effective brand building, it can weaken the firm's ability to deter entry. Finally, we find that the threat of entry impacts the value of the firm and the value of the brand in qualitatively different ways; as the threat of entry increases, the value of the firm necessarily decreases, but the value of the brand can increase because the ability to use the brand to deter entry becomes more important.

Yield Management in Hotel Industry: An Exploratory Study on Selective Five and Four Star Hotels in Bangalore City

The successful growth history of hotel Industry in India seconds to China in Asia Pacific, and performance reveals that Indian hotels are bullish. The benefit to Indian hotel industry is, there is vast investment in hospitality with growing income and rising competition. Studies conducted reveals that demand exceeds supply by more than full percentage. Investigations connected on hotel industry have been carried out based on pricing strategy, awareness of service policy in restaurants and revenue management. Entry of new competitors and categorized hotels, has impacted the accommodation providers within the city. The present study has conducted a structured survey among selected five star and four star hotels. Firstly, the study has analyzed the occupancy variation between hotels. Secondly, the study has examined facility extended by hotels within the premise and finally to evaluate the revenue generated with extension of facility. This, study reveals there exists a gap in market force and revenue realization in the everyday hotel revenue management. The investigation has been able to identify the factors that hinders the performance and decision to be made.

Do Certificate-of-Need Laws Limit Spending?

In 35 states, certificate-of-need (CON) laws in health care restrict the supply of medical services. These regulations require providers hoping to open a new healthcare facility, expand an existing facility, or purchase certain medical equipment such as an MRI machine or a hospital bed to first prove to a regulatory body that their community needs the service in question. The approval process can be time consuming and expensive, and it offers incumbent providers an opportunity to oppose the entrance of new competitors. However, it was originally hoped that these laws would, among other things, reduce healthcare price inflation. In this brief, I review the basic economic theory of a supply restriction like CON, then summarize four decades of empirical research on the effect of CON on healthcare spending. There is no evidence that CON regulations limit healthcare price inflation and little evidence that they reduce healthcare spending. In fact, the balance of evidence suggests that CON laws are associated with higher per-unit costs and higher total healthcare spending.

Analysis of an Acquisition in the Banking Sector: Banamex and Citigroup

The Mexican banking sector during 90´s it has had transitions from private to public and to private again, and it is one of the main sectors which have received Foreign Direct Investment (FDI), mainly from Spain. In this regard the main aim of this paper is to analyze the acquisition of Banamex by Citigroup. In order to reach this aim a case analysis method was carried out. The results suggests that Citigroup invested in Banamex for consolidate its presence in Latin America, the profits in Mexico, imitate the Spanish banks that some years ago have invested in Mexican banks, the banking sector in Mexico was deregulated as consequence of neoliberal policies and the potential market that represent Mexico, finally the acquisition of Banamex allowed competition in the banking sector and the entry of new competitors in the industry. t peculiar investment strategies have on the well-known relation between size and performance of SRI funds. major-bidi;mso-bidi-theme-font:major-bidi;mso-ansi-language:EN-GB;mso-fareast-language: ZH-CN;mso-bidi-language:AR-SA'&amp;gt;This paper analyzes the wealth distribution taking into account the reaction of the market to the alliance as an indicator of a successful strategy. It explores the case of the automobile industry, which is characterised by a high use of inter-firm cooperation, such as strategic alliances and mergers &amp;amp; acquisitions, to effectively compete in the global market and face the global crisis.

Foreign Direct Investment in Mexico: Acquisition of Banamex by Citigroup

The financial and banking services sector has always been one of the most important in the world economy, in Mexico it has had transitions from private to public and to private again, and it is one of the main sectors which have received Foreign Direct Investment since the opening trade economic policy of Mexico. The increase in FDI inflows to Mexico have been marked since the entry of NAFTA and one of the most important acquisitions of Mexican companies has been Banamex bought by the US global corporate CitiGroup. This work shows that in addition to having contributed to one of the most important amounts in the history of receiving FDI by Mexico, the acquisition of Banamex allowed competition in the financial sector and the entry of new competitor into the industry.

Predicting Cartel Formation

This article distills insights about cartel formation from 41 cases prosecuted by the European Commission between 2001 and 2010. The case studies examine the events occurring in the industries prior to the cartels' set-up and identify the following potential causes for cartel formation: Changes in prices, demand and customer conduct, capacity utilization, increased imports and entry by competitors, and events in the legal and regulatory environment of the firms. Cartel formation is not necessarily triggered by events negatively impacting the firms' profitability, however, profit shocks and the resulting (expected) disturbance in the market seem to trigger collusive behavior. Factors that are commonly deemed to destabilize cartels, like entry of new competitors or buyer power, may foster cartel formation.

Foreign Direct Investment in Mexico:Acquisition of Banamex by Citigroup

The financial and banking services sector has always been one of the most important in the world economy. In Mexico it has had transitions from private to public and to private again, and it is one of the main sectors which have received Foreign Direct Investment since the opening trade economic policy of Mexico. The increase in FDI inflows to Mexico have been marked since the entry of NAFTA and one of the most important acquisitions of Mexican companies has been Banamex bought by the US global corporate CitiGroup. This work shows that in addition to having contributed to one of the most important amounts in the history of receiving FDI by Mexico, the acquisition of Banamex allowed competition in the financial sector and the entry of new competitor into the industry.

Multidimensional Competition and Corporate Disclosure

AbstractIn this paper, we argue that the influence product market competition exerts on disclosure is defined by the combined effect of the incentives and disincentives to disclose raised by the multiple competition dimensions. We distinguish between firm‐ and industry‐level competition measures, and we hypothesize that the former raises agency and proprietary costs, whereas the latter creates incentives to disclose either to fulfil the owners’ need for information to monitor managers or to deter the entrance of new competitors in the industry. Our research design allows for non‐monotonic relationships between competition and disclosure as well as for interactions between competition dimensions. Using a sample of US manufacturing companies, we gather evidence that is consistent with our hypotheses. First, we find an inverted U‐shape relationship between corporate disclosure and a firm's abnormal profitability, which is suggestive of firms being reluctant to disclose when they are underperforming (outperforming) their rivals because of the fear of unveiling agency conflicts (raising proprietary costs). Second, we observe a U‐shape relationship between corporate disclosure and industry profitability, although this U design evolves to approximate a rising function as the protection provided by entry barriers increases.

The Emergence of More Vigorous Competition and the Importance of Entry Comparative Insights from Flour and Poultry

The uncovering of several cartels and exclusionary practises by the Commission in the food and agro-processing sector has shown that the liberalisation of the sector in 1996 did not necessarily increase competition and bring the benefits to consumers envisaged at the time. This paper draws on competition cases in the food and agro-processing sector to explore firm behaviour and outcomes in two important food value chains. It reveals how anticompetitive arrangements worked and provides insights as to how the successful entry of new competitors in highly concentrated markets has facilitated increased competition to the benefit of consumers. In particular, the paper draws a comparison between the poultry value chain, where new entry has been observed, in contrast with the wheat-to-bread value chain which has not experienced any substantive new entry.

Análise do potencial de flexibilidade estrutural: o caso de uma cooperativa de trabalho

The article aims to analyze the structure flexibility potential of a Medical Cooperative from the perspective of Dominant Coalition. It is characterized as a qualitative research, with the descriptive objective and delineated by the single case study strategy. The data were collected through semi-structured interviews, document analysis and systematic direct observation. It was found that the environment that the Cooperative operates is dynamic and complex, mainly due to the market being regulated by Government, the entry of new competitors, as well as social, cultural and economic factors that underlie any market. This context tends to require greater flexibility potential of organizations. The structural flexibility is associated with the degree of mechanistic: the more mechanical, less flexible. However, even acting in this context and being set up as a cooperative, research indicates the predominance of mechanistic aspects. The cooperative management model, the size of the organization and the use of the Total Quality Management, are aspects that restrict the potential for structural flexibility of Cooperative.

Modelo para avaliar o comportamento dinâmico da evolução da comercialização de produtos em um contexto de inovação aberta

Resumo Esta pesquisa é estabelecida no contexto da inovação aberta. Nesse contexto, a abertura do processo de inovação acarreta fatores específicos que podem comprometer seu desempenho. Assim, o objetivo geral desta pesquisa consistiu em evidenciar a influência de dois fatores na taxa de comercialização de produtos ao longo do tempo: (i) a geração de conhecimento externo e (ii) a entrada de novos concorrentes. Esta pesquisa descritiva utiliza a Dinâmica de Sistemas resultando no diagrama de causalidade e no diagrama de fluxo e estoque no tratamento qualitativo e quantitativo. É evidenciado que a geração de conhecimento externo pode influenciar a abertura de novos mercados conduzindo ao aumento de consumidores potenciais e efetivos. A entrada de novos concorrentes influência o sistema pelo valor no mercado e seu reflexo na percepção do consumidor. Isto se expressa em uma taxa de comercialização alongada e um crescimento abreviado de unidades comercializadas.