The Development of Barrier to Entry in B2B Markets. The Case of Dissertation

The Development of Barrier to Entry in B2B Markets. The Case of Russian Underground Construction Industry - Dissertation Example Concerning this, a qualitative research was initiated employing personal interviews among management executives from ten tunnelling / underground construction companies, both local and foreign, within Sochi, St Petersburg and Moscow cities. These cities have been chosen as they are the ones experiencing strong growth in underground construction within Russia at the moment and therefore tend to have considerable number of tunnelling businesses. The researcher generally generated participants on the basis of proximity, ease-of-access, and willingness to participate under the principle of non-probability sampling. Environmental sustainability is found to be the most prominent advantage of underground construction. ... ion, and difficulty in starting the mining process, but critical analysis and detailed planning are important to ward off the probable difficulties associated with underground construction. Production management and introduction of new technologies and investment in latest equipment and machines were found crucial on the part of construction companies to ensure competitive edge over their competitors. Barriers to underground construction industry include the need to outsource high capital, employ advanced technologies and secure government licences. These make it harder for new, particularly small entrants to penetrate into the industry knowing that the large companies have wider chance to explore advertising, and acquire equipment, wages, and research and development. Responding to the changes associated with the existence of these barriers was found as important move among companies in underground construction industry. These changes primarily include sophistication of construction techniques, appropriate use of planning, implementation, evaluation and control. Russian government was found not a remarkable barrier to potential entrants, but the set standards by the government authorities could front probable risk factors prior to successful entry. Due to shortage of skilled workers in the underground construction industry, there is a necessity to outsource human resource, and employ foreign partners, but one substantial move to ensure productivity and competitive edge is to allow manpower to undergo refresher courses and advanced trainings to keep them abreast of the new technologies and processes employed in the industry. Underground construction companies also found that innovation and invention are also important considerations to stay at the level of competitive