New suppliers entering the market

In a developed market, such as the United States, France, or Switzerland, the market — nearly any market and segment — is filled with suppliers and consumers. These huge numbers on both sides of demand and supply mean that on the supply side there is a great number of separate suppliers. (This is, of course, if the anti-monopoly comettee is working well.) The great number of suppliers, in turn, means there is great competition. Of course, markets shares of different suppliers differ, with some having bigger parts and others struggling with smaller market shares. However, despite the separate interests of suppliers in the market, the fact remains: in developed market, very many suppliers exist!

As we know from basic business principles, entering a new market is a tough task. However, there a few factors that significantly influence the toughness of entering the market as a supplier. One of these deciding factors is the number of competitor suppliers and the costs associated with the launch. (Although these are two different factors, let's assume for simplicity that number of existing suppliers and moneys required to enter are combined into a single factor.)

That said, it becomes clear that in developing countries it is much harder for entrepreneurs to enter markets since there is a great number of competitors already. One the other hand, following an opposite approach, it is easier to enter the market in a developing country. It is!