market entry

Initiation of efforts to sell a new or existing product to a group of consumers not previously targeted by that marketer. McDonald's entered the Moscow market by establishing a retail outlet in Moscow. Radio Shack entered the personal computer market by introducing its own brand. Entry may be achieved through innovation, acquisition of another company already in that market, or expansion of current distribution channels. Entry might also be achieved through cooperation with other business entities in an arrangement called a virtual corporation in which the skills and assets of one company are combined with those of another to achieve a shared goal. The existence of strong competitors, patented technology_, or the necessity for large initial capital outlays, act as barriers to market entry. See also follower; leader.