EconPapers    
Economics at your fingertips  
 

Sustainable Market Entry Strategy under a Supply Chain Environment

Yanjie Wu () and Sujuan Wang ()
Additional contact information
Yanjie Wu: School of Economics and Management, Shanxi University, Taiyuan 030006, China
Sujuan Wang: Research Center for Management and Decision Making, Shanxi University, Taiyuan 030006, China

Sustainability, 2021, vol. 13, issue 6, 1-15

Abstract: Firms routinely face the challenging decision of whether and how to enter a new market. Inspired by the practice of Chinese household appliance firms sustainably entering the rural market from the urban market, Tesla and Topshop entered the Chinese market from their own. We model a supply chain system composed of a manufacturer and a retailer to investigate entry strategies for facing a new market. These sustainable entry processes can help enterprises better achieve their own promotion and increase profits. The equilibrium solutions indicate that (1) the manufacturer’s exclusive entry mode is “market development” entry, while the retailer’s exclusive entry or joint entry mode can achieve “dual benefit” entry under certain conditions; and (2) both the manufacturer and the retailer prefer the joint entry mode. It is the only Nash equilibrium. Monopoly firms dominating the new market may not be profitable all the time. Appropriate competition can bring about a win-win situation. These results provide theoretical proof for the preference and rationality of the rural market entry mode in the Chinese household appliance industry and of the overseas market entry mode for international enterprises.

Keywords: supply chain; market entry; entry mode; exclusive entry; joint entry (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.mdpi.com/2071-1050/13/6/3046/pdf (application/pdf)
https://www.mdpi.com/2071-1050/13/6/3046/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:6:p:3046-:d:514520

Access Statistics for this article

Sustainability is currently edited by Prof. Dr. Marc A. Rosen

More articles in Sustainability from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().

 
Page updated 2021-04-29
Handle: RePEc:gam:jsusta:v:13:y:2021:i:6:p:3046-:d:514520