Market entry
Market entry (also market access ) describes the possibility of an economic entity to participate in a market as a buyer or seller .
General
Market access is generally possible for every market participant without trade barriers ( free trade ). Individuals , companies or the state with its subdivisions ( state-owned companies ) can be considered as economic subjects who have market access as market participants . If, on the other hand, it is difficult or impossible for the economic subject to participate in the market, there are barriers to market entry that must be overcome with a market entry strategy . Free market access therefore consists in the possibility that market participants can offer or request certain goods or services on the market without being hindered by legal access restrictions or access deterrence strategies of established providers.
economic aspects
Regardless of which of the competition theories one leans towards, the ability to enter the market or the level of market entry barriers is always an essential element for the intensity of competition . This reduction in the variety of providers generally reduces the intensity of competition and the efficiency of competition and is often at the expense of consumers or the purchasing producers .
Conversely, large ( monopoly ) or long -established providers often have a pronounced interest in restricting market access for other providers in favor of their own higher profits or in order to spare themselves the agony of intense competition. This is why it is usually more difficult for new providers to enter the market because they have to make high investments in production facilities (e.g. Airbus 1970 in the passenger aircraft market dominated by Boeing ).
If a supplier has free market access, his market cultivation leads to falling market prices due to the increase in supply . If prices are achieved that are above the average costs, new providers flow into the market until the price corresponds to the average costs. So there are - in addition to administrative hurdles - an economic market entry barrier.
Market access for certain branches of the economy is restricted in many countries by market regulation . For example, credit institutions require a banking license ( section 32 (1) sentence 1 KWG ) or insurers require a permit ( section 8 (1) VAG ) from BAFin , without which access to the financial market is not permitted. Market entry for market participants and trading objects is subject to high statutory market entry barriers on stock exchanges and commodities exchanges , which ultimately serve to protect investors . This includes the admission restrictions for market participants ( stock exchange and securities dealers , issuers or credit institutions) and admission conditions for trading objects ( securities prospectus and market capitalization ; see regulated market ).
International
In international trade , obstruction of market access is not uncommon and serves to protect own markets and providers, e.g. B. on customs duties , bureaucratic import hurdles ( market approval by supervisory authorities ), the international enforcement of monopolies for intellectual property , concessions , licenses or subsidies for their own providers. The prohibited forms of restriction of market entry also include mafia-like practices.
literature
- Dietrich von der Oelsnitz: Market Entry Management. Problems, strategies, experiences. Schäffer-Poeschel Verlag, Stuttgart 2000.
Individual evidence
- ↑ Bernd Woeckener, Economics: An Introduction , 2013, p. 84
- ↑ Gerd G. Kopper, Market entry in daily newspapers: To ensure diversity of opinion through competition , 1984, p. 87
- ↑ Susanne Wied-Nebbeling, Market and Price Theory , 1993, p. 1
- ↑ Berrios Amador / Karl Lohmann / Franz Pleschak (ed.), Equity in the corporate finance , 1999, p 219
