Small-scale entry into foreign markets may make it more difficult for the small-scale entrant to build market share and capture first-mover advantages.

Question

Quizplus · Accepted Answer

Small-scale entry into foreign markets often means limited resources and a slower pace of market penetration. This can put the small-scale entrant at a disadvantage compared to larger competitors who have better economies of scale and more resources to invest in marketing, distribution, and other activities. As a result, the small-scale entrant may find it harder to build market share and establish a foothold in the foreign market. Moreover, by the time the small-scale entrant gains enough momentum to effectively compete, the first-mover advantages may have already been captured by others who entered the market earlier.

Small-Scale Entry into Foreign Markets May Make It More Difficult