The percent, and mostly less than half

The immense amount of literature that impartsknowledge about international market entry mode research (Brouthers andHennart, 2007; Weisfelder, 2001; Werner, 2002) shows the broad significance ofchoosing the correct market entry mode because it determines the success andstability of a company’s international operation. it means, one wrong actionand it cannot be rectified without severe implications for the firm’s future(Pedersen et al., 2002).

The innovations for a specific region and waiting forclients to approach them are a decade back history. Organizations must realizethat their services and products, regardless of how good they are, simply donot sell themselves (Kotler, 2011).   The interest of study is on the high regulatedmarket with an innovative offering by a new entrant and the barriers associatedwith the entry in the market. As per the research and statistical analysis,only a fraction of new entrants survives after a couple of years of operations,failure rate of new ventures in the first year its self is around 40 percent.up to four-year survival companies are around 50 percent, and mostly less thanhalf cross more than five years (Timmons 1990).

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Market selection techniques andfinancial constraints are the most important factors of failure of new entrantsare argued in a journal by (Cabral and Mata, 2003). This argument is alsosupported by several well-known authors who mentioned these barriers andseveral other barriers are a block for market entry for small-scale ventures(Hariharan & Brush 1999). These researchers found also a low rate ofinnovation and high barriers to entry have a common link, especially in highregulated industries which results in lower number of entries of ventures(Friedman & Taylor 2011).

previous studies also figuring out that highentry barriers have a strong influence on the industry performance, reducingproductivity, employment and increasing labor costs, decreasing R&Defficiency, hampering innovation and leading to suboptimal allocation ofresources(Cullman & al. 2012).   From years to years each researchers depending onindustry and regions did researchers on different barriers of market entry andit always varied to each other. Especially for new innovative startups/entrants always need to face the heights of barriers especially in regulatedindustry.

Lately, barriers to entry have been defined as factors that limitcompetition by preventing market entry of new firms and in the process oftenleading to an increase in the profits of the established incumbents in themarketplace (Karakaya 2002). There is always also a lack of research ondifferent variables of the barrier of different industries and it affects thenew companies who would like to make their entry. While we talking about highregulated industries this kind of practical studies of industry are missing andit always stands as high barrier industry and results in fewer entrants (Lutz& al. 2010)   The studyon barriers for each industry is diverse with different factors and more of itscharacteristics in the market. While doing the empirical studies the barriersare totally different in highly regulated industries and we need to considerthe characteristics of a new startup company, its industry life cycle, themarkets which they intended to enter and also the product specifications. Thenew entry companies with new markets in mind need to face no further experiencesof the market and financial capital issues.

So in this thesis, we arediscussing the new entry company which is specialized in patient care devicesand would like to enter new markets with no further experiences. We are alsodiscussing the barriers associated with new markets and how to find a solutionout of it and also proposing a market entry strategy. While talking about themedical device industry, most of the segments are handled by most strongestablished, existing and experienced companies in the markets, and the profitmargin associated with these segments are totally diverse from other industriesdue to their monopoly, sustainability, and wide customer segments. The mainbarrier we see in this industry which makes the giant companies stronger andkeeps away from new entrants is the highly regulated government policies fromdifferent authorities.

   In this thesis we analyzing Germany as a targetmarket to entry and thereby in empirical studies we need to analyze theeconomic conditions, government policies and medical regulations. The companyis the United Kingdom Based new entrant named Diabetic boot co. and they comewith a unique product with multiple technologies which can treat the diabeticulcer related issues affected by feet’s and they are trading the product in abrand name of Pulse Flow DF. The Diabetic Boot Company has transitioned from aStartup to a trading SME in 2016.

The product belongs to class 2 medical deviceand its characteristics and specifications can help to achieve good results indiabetic affected society. As its coming in high regulated industry, thebarriers associated are unique to patient care device segments.  We will be interviewing also the industryexperts in each country to get the best analysis and real-time scenariosassociated with barriers. In this literature, we will be examining theassociated barriers for Diabetic Boot Company to enter the market. And it’s aknown fact that strong economic regions like Germany and Switzerland got veryhard regulations for a new company to start their operations and trade. Thisliterature also providing potential solutions to influence the barriers toentry from the point of view of the entrant and also the government in aidinginnovation diffusion in health care leading to improved social welfareconsequences.


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