DIMENSIONS OF MARKET ATTRACTIVENESS - COMPETITIVELY INTERACTIVE SPATIAL MODELS

This paper presents a normative, multidisciplinary approach for evalua ting market entry strategies with concern for the effects of spatial a ssumptions on performance expectations. An assessment framework is lin ked to a series of models that show the value of adding spatial and co mpetitive perspectives to typical baseline conceptualizations of marke t opportunity. Criteria for assessing market attractiveness are discus sed with special concern for the problems of field service firms whose market boundaries are not limited by fixed facility locations. The pr oblem is conceptualized as the managerial decision to locate a new bro kerage office in a highly competitive regional market area. Realistic constraints are established by focusing the market entry decision thro ugh aggregate data from secondary sources that ate readily available t o an outsider who had not been active in the geographic markets consid ered. A simple model based on market potential is progressively enhanc ed with spatially adjusted measures of market attractiveness and compe titive resistance. Empirical tests highlight the impact of alternative model formulations and choice criteria on the decision-making process .