Market Entry and Concentration Ratios, Impacts of Keystone Holdings Free Essay Example, 3000 words

Advanced Ceramics Business has facilities in Europe, North America, South America, and Asia. As originally structured, the assets acquired by Keystone would have included the Latrobe facility and other assets relating to the manufacture and sale of alumina wear tiles. On December 2, 2010, however, in an effort to resolve competitive concerns relating to the original transaction, Keystone and Saint-Gobain amended their agreement to exclude from the sale Saint-Gobain's North American alumina wear tile business. Advanced ceramics is a subsidiary of Saint-Gobain and the parent company is present in almost 64 countries. Advanced ceramics' sales revenue differs largely from country to country but the main source is North America with around 1 billion dollars (Ceramics and plastics). Its revenue in 2009 was 153.3 million in the Check Republic and 8.7 million euro in central and northern Europe (2009). Saint Gobain s net sales figures are 37,786 euros in 2009 and 43800 euros in 2008. The company earns 42% of the income from North America. The easiness with which a new firm can enter into an existing industry determines the structure of the market. In oligopoly markets, it is very difficult for new firms to enter and compete with existing firms. We will write a custom essay sample on Market Entry and Concentration Ratios, Impacts of Keystone Holdings or any topic specifically for you Only $17.96 $11.86/page The size of the investment necessary to enter the market is substantial in relation to the size of the overall markets. In addition, the uncertainty that an entrant could secure the distribution necessary to make the investment profitable is highly unlikely.