The paper examines modern theoretical approaches to the interpretation of the concept of "entry barriers" and proposes to understand it as a set of legal norms and market instruments, patterns, rules and traditions, which implementation increases access costs or limits the supply of products to the market.
After considering a well-known classification of entry barriers, it is proposed to broaden it with such types that allow to assess barriers and effectively develop an entry strategy. In particular, these are a division on a level of regulation (that allows to differ obstacles on different foreign markets) and on a method of overcoming (to determine barriers, that a company can adapt to, avoid or correct). The place of origin of barriers is chosen as one of classification features in the thesis and the concept of "exit barriers" as a set of obstacles for the company in the exporting country and "entry barriers" as a set of obstacles for the company on each individual foreign market was developed on its basis.
There has been developed an algorithm, which provide a consistent implementation of the stages for developing a strategy to overcome entry barriers into foreign markets for companies and includes 8 stages, that undergo analytic and value analysis and are managed all the time.
There have been conducted a survey to obtain an information regarding barriers, that prevent companies from entering foreign markets. The most influential exit barriers (barriers in export country) are absence of agreements between countries, lack of information about foreign markets (prices, competitors, consumption trends etc.) and lack of financial resources. The most influential entry barriers (barriers in import country) are requirements for production standardization, product certification and export licensing, cultural differences in business practices and high tariff barriers.
The method of determining the maximum allowable amount of costs for overcoming entry barriers is substantiated, and it should be calculated as the difference between wholesale price on foreign market and wholesale price of a company’s product. The author formulates recommendations for dividing the costs of overcoming barriers into fixed and variable, that allows to determine the break-even export volume for a company.
Based on the analysis, four types of alternative strategies are formulated that should be used when entering a new foreign market, namely: adaptive strategy (a long-term plan of consistent implementation of a set of actions associated with the requirements that are prerequisite for a company to enter a market), workaround strategy (a long-term plan of consistent implementation of a set of actions to organize company's entry into a high barrier market through a transit market), indirect strategy (a long-term plan of consistent implementation of a set of actions to build multi-channel logistics chains with the participation of international and foreign national intermediaries) and a strategy of prolonged entry (a long-term plan of consistent implementation of a set of actions to lower barriers to entry into a relevant foreign market in a long term). The author describes each type of strategy and indicates the conditions of their application and their attribute features. Entry costs for each proposed strategy have been identified.
A matrix method has been formed on a basis of choosing a specific strategy to overcome entry barriers into international market by meat producing companies depending on the level of barriers on it. It is proposed to determine this level on the basis of the barrier index, which takes into account normalized values of the competition, corruption, administrative, tariff and organizational barriers. After analyzing the recommendations of the Chamber of Commerce and Industry of Ukraine, there have been calculated the barrier index for the markets of China, Israel, India, Africa (Ghana, Angola, Algeria, Egypt, Morocco, Tunisia, Libya, Guinea, Nigeria and South Africa), entry barriers and entry benefits for meat and meat producing companies were characterized.
