Research On Market Entry Strategy Based On Chakravarthi Narasumhan Model

In recent years,Internet industry has presented blowout development.All works of life are planning to link the original industries with the Internet industry in order to gradually realize resource integration and business networking,and achieve higher efficiency,lower costs and more revenue.With the introduction of the concept of interconnection of all things,new industries are springing up.Both large-scale economic entities such as central enterprises,state-owned enterprises and small or medium-sized enterprises which are thriving under the market economy,they are all looking for the most suitable opportunity to enter an uncertain market in order to snatch more market resources and gain more profits.Therefore,studying the optimal market entry strategy of different enterprises in the face of a new market can provide theoretical guidance for the real enterprise game.Previous studies have paid more attention to the study of the pioneer advantages.However,in this article,We not only study the advantages of the fi rst mover,but also study the disadvantages of the first mover and the disadvantages of the second mover,and sort out and clarify the correlation between these three variables.This paper establishes two models of simultaneous game and sequential game for heterogeneous firms under different market conditions,and makes corresponding numerical analysis and simulation analysis.Compared with the advantages of first mover,the conclusion shows that companies pay more attention to the disadvantages of the second mover in the selection of market entry strategies.Weaker companies may suffer huge losses of profits if they enter the market later.Therefore,in order to avoid such losses,they tend to choose to enter the market first.On the contrary,because of stronger companies have more advantages in innovation,resource control and channel laying capacity.so they tend to enter the market later to avoid the losses caused by the market uncertainty,In the market,we can see that many innovative companies have failed to enter the new market in the first year.According to the analysis of this paper,we can see that a new company or a small business may choose to enter the undetermined market first is most likely driven by the disadvantages of the latter.Finally,this paper introduces the conversion cost in the study,and further analyzes the optimal market entry strategy of heterogeneous firms in simultaneous and sequential games.The results show that the magic of the disadvantages of the latter is still exists.In subsequent studies,this paper will also introduce variables such as the self-encroachment rate to make a more complete analysis and demonstration of the company's optimal market entry strategy.