Bariers to exit

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Title: Bariers to exit

Essay Details:

Subject: Business

Author:

Date: October 10, 2011

Level: University

Grade: A

Length: 6 / 1691

Essay text:

Six major exit barriers are identified from the literature review, based on Porter's classification of the barriers as economic, strategic and managerial. The effects of these six barriers(cost of divestment, operating fit, marketing fit, forward vertical integration, backward vertical integration and number of years of association of the businesses unit with the firm) on the decision to exit from markets are tested by using a decision-making exercise. The results indicate that executives consider forward and backward vertical integration to be the most important barriers to exit, followed by the number of years the unit is with firm, was found significant only for the maturity stage of the product life cycle...

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