| Abstract [eng] |
The theme of overcoming market entry barriers has been the object of scientific researches for decades. Though the concept of market entry barriers and their classifications has been widely analysed, there is still lack of clarity of how to choose the means of overcoming market entry barriers in some specific geographical areas and specific economic activities. Therefore, the problem of overcoming market entry barriers is still relevant. The market of United Arab Emirates (UAE) is important for the biotechnology companies willing to expand their international activity in MENA region, due to the favourable business environment and strong Government’s orientation towards he development of biotechnology market. Research problem - what is the model of measures of overcoming barriers to entry into the UAE market for biotechnologies companies? The object of research - measures of overcoming market entry barriers. The aim of the research - to distinguish the measures for overcoming the UAE biotechnology market entry barriers. The objectives of the research were defined: 1. To perform situation analysis regarding the UAE biotechnology market entry barriers; 2. To theoretically substantiate the solutions for overcoming market entry barriers; 3. To substantiate research methodology for managerial actions to overcome the UAE biotechnology market barriers; 4. To propose managerial solutions and recommendations for overcoming the UAE biotechnology market barriers. Research methods: scientific literature review was conducted in order to define market entry barriers and propose theoretical model.; qualitative research strategy was applied: semi-structured interview and delphi research were performed with the aim to research market entry barriers and ways to overcome them in UAE biotechnology market. Representatives of nine international companies that have recently entered the UAE market took part in the research. The results of research revealed that the most important market entry barriers that the companies face in UAE biotechnology market are these: strong competition; high R&D costs; rather expensive labour force; financial burden/ high cost of entering the market; strict legal rules for product licencing- administrative burden; pressure to have high level of innovativeness; import barriers. Main managerial solutions to overcome market entry barriers that the companies adopted in UAE market were licensing, joint venture, direct investment - building company’s production plant and / or subsidiary. Main conclusions of the research: Structural, consumer related market entry barriers appear to be not significant and not risky in UAE pharmaceutical biotechnology market. Microeconomical market entry barriers and market entry barriers related to the lack of information can be overcome by indirect forms of activity: joint venture with partners; licensing; strategic alliances. When the market entry barriers are weak and not risky, foreign direct investment is a good decision in UAE pharmaceutical biotechnology market as far as local production is encouraged by government of UAE. As far as competitive strategies are concerned, the chosen strategy depends upon how the company deals with microeconomical factors. If cost structure is favourable, it can apply cost leadership strategy. |
