Managing Internationalisation
Patricia Adam
ISBN 978-3-8252-8616-3
Online Exercises
Chapter 4
Exercise 4-1: New entrants
© UVK Verlagsgesellschaft mbH, Konstanz und München 2015
Adam, Managing Internationalisation – Chapter 4
Exercise 4-1: New entrants
Background: According to the industry analysis based on Porter’s Five Forces
(expanded model, see figure below) an important force is the threat of new entrants or so-called insurgents. Whereas the other forces are usually already visible
and thus known, searching for potential market entrants demands significantly
more creativity.
Task: Imagine you are the manager of the German catering service “Happy
Kids” specialising in providing affordable, good-quality warm meals at lunch time
to day nurseries, kindergartens and schools. Typically, contracts are made for two
years. So far, only two other competitors in your region offer comparable services. These are the “Lucky Children Caterers” and the “Hearty Meals” catering
service, also small independent catering firms. As there are more and more kindergartens and schools changing to full-time offers that include warm meals at
lunch time, business is attractive and you are able to achieve good margins. Your
(German) town lies directly in a border triangle, so it borders on France and
Switzerland.
Now your task is to analyse potential new entrants in your market.
a)
How do you assess the threat of potential entrants (low, medium or high)?
b) What kinds of potential entrants would you expect? Why?
© UVK Verlagsgesellschaft mbH, Konstanz und München 2015
2