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Competitive reactions to market entry The case of the Finnish grocery retailing industry

Competitive reactions to market entry The case of the Finnish grocery retailing industry Grocery retailing markets are becoming more open and international. Finland is an example of a previously closed and restricted market which has recently opened its borders to foreign food products as well as food retailers. This paper describes the competitive dynamics and actions of the domestic retailers that took place when the first foreign grocery retailer entered the market. The paper concludes that the main competitive moves were related to the price of food products and to changes in product ranges. The domestic retailers imitated the concept of the entrant and added new low‐priced own brands into their product mixes. The roles of the market actors were reversed during the entry process: the domestic market leaders became followers and the small entrant played the role of the market leader. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png British Food Journal Emerald Publishing

Competitive reactions to market entry The case of the Finnish grocery retailing industry

Outi Uusitalo
British Food Journal , Volume 106 (9): 10 – Sep 1, 2004
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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
0007-070X
DOI
10.1108/00070700410558193
Publisher site
See Article on Publisher Site

Abstract

Grocery retailing markets are becoming more open and international. Finland is an example of a previously closed and restricted market which has recently opened its borders to foreign food products as well as food retailers. This paper describes the competitive dynamics and actions of the domestic retailers that took place when the first foreign grocery retailer entered the market. The paper concludes that the main competitive moves were related to the price of food products and to changes in product ranges. The domestic retailers imitated the concept of the entrant and added new low‐priced own brands into their product mixes. The roles of the market actors were reversed during the entry process: the domestic market leaders became followers and the small entrant played the role of the market leader.

Journal

British Food Journal – Emerald Publishing

Published: Sep 1, 2004

Keywords: Retail trade; Food products; Finland; Market entry

References

  • International expansion and strategies of discount grocery retailers: the winning models
    Colla, E.
  • The entry of Wal‐Mart in Brazil and the competitive responses of multinational and domestic firms
    Da Rocha, A.; Dib, L.A.
  • Competitive response and market evolution
    Gatignon, H.; Soberman, D.
  • Competitive reactions to market entry: explaining interfirm differences
    Gatignon, H.; Anderson, E.; Helsen, K.
  • Incumbent defense strategies against new product entry
    Gatignon, H.; Robertson, T.S.; Fein, A.J.
  • Toward a theory of competitive market signalling: a research agenda
    Heil, O.; Robertson, T.S.