Order of Market Entry and Business Performance an Empirical Evidence from the Indian Manufacturing Industry
The IUP Journal of Management Research, Vol. VIII, No. 8, pp. 43-58, August 2009
Posted: 25 Aug 2009
Date Written: August 25, 2009
The literature on order of entry suggests that early entrants tend to have a higher market share and be market leaders across various types of goods and firms. The paper also suggests that these firms invest heavily in marketing strategies, like advertising, distribution and promotions to prevent the entry of other firms. This study aims to generalize the findings in the Indian context. On a cross-sectional data set of Indian companies in the manufacturing industry, the results show the early entrant advantage. Further, the study investigates the role of order of entry in the business performance of a company. The findings illustrate that the early entrants outperform the non-early entrants and are more aggressive in pursuing marketing and advertising strategies. The implications of the study and future research prospects are also presented.
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