Ping-Hung Chen, Ching-Jou Hsu
barriers to entry, competitive strategy, cable television industry, home shopping channel, Taiwan’s media
The home shopping channel market has become remarkably prosperous in terms of its high revenues over the past several years in Taiwan. As a result, several business groups have high interest in this market and continually set up home shopping channels or even buy out existing channels in order to increase their market shares. This study aims to analyze the market barriers of entry in Taiwan’s home shopping channel market. In addition, it examines how market incumbents construct market barriers to prevent newcomers from entering the blooming market. Meanwhile, this study also tries to explore how newcomers strive to survive by practicing competitive strategies. This study finds that the strategies of incumbents to build up market barriers are as follows: economies of scale, product differentiation, vertical integration, and multiple sales channels. As for newcomers, their strategies include: buying out existing channels or acquiring existing cable systems as channel platforms.