Entering low‐end markets: a new strategy for Swiss companies

Abstract

Purpose

This paper provides a better understanding of why manufacturing companies often fail to enter the low‐end market.

Design/methodology/approach

Case studies on Swiss firms that create competitive advantage through technological, quality and/or innovation leadership are the main tool of theory development.

Findings

Our objective was to explain why firms often fail to enter the low‐end market. The main finding is a method for entering the low‐end market successfully.

Research limitations/implications

Our remarks are limited to manufacturing firms that create competitive advantage through technological, quality and/or innovation leadership.

Practical implications

The key managerial implications is a method for entering the low‐end market successfully. The method offers some guidance for overcoming the successive hurdles limiting the entry in the low‐term price segment in emerging markets.

Originality/value

We were able to add a complementary perspective to existing literature on the international management. We suggest that the long‐term success in emerging markets is influenced strongly by the entry in the low‐end price segment.

Citation

Gebauer, H. (2006), "Entering low‐end markets: a new strategy for Swiss companies", Journal of Business Strategy, Vol. 27 No. 5, pp. 23-31. https://doi.org/10.1108/02756660610692671