Barriers to Entry and Exit
The White Goods industry is characterized by high barriers to entry and low barriers to exit especially where global conglomerates like Samsung are concerned. Indeed, it is often very difficult to enter emerging markets because a host of factors have to be taken into consideration such as setting up the distribution network and the supply chain. However, global conglomerates can exit the emerging markets easily as all it takes is to handover and sell the business to a domestic or a foreign player in the case of declining or falling sales. This means that Samsung has entered many emerging markets through a step-by-step approach and has also exited the markets that have been found to be unprofitable. This is the reason why white goods multinationals like Samsung often do their due diligence before entering emerging markets.