Firms form various alliances or use brand extensions to enter new markets in order to improve their operational efficiency and create a positive spillover. However, they do not always know the implications of these strategies for market entry and multimarket competition because the sale of products in one market can have negative spillover effects on product sales in other markets. We present an analytical framework to examine whether and how (i.e., by choosing alliance entry or independent entry) competing firms should enter a market in a situation where market spillovers occur when a firm enters a spillover-producing market to sell products that may increase or decrease the consumers' willingness to pay for products in the primary market. Our analysis shows that the operational efficiency (or quality differentiation ability) of firms in a spillover-producing market varies, and hence, the impact of market spillovers differs for firms. We identify the key factors, such as bargaining power, brand value difference in the primary market, and the extent of efficiencies and spillovers, that determine the firms benefitting from the different entry strategies. Specifically, we show that firms would be more willing to choose an alliance strategy to enter a spillover-producing market if the negative spillover is small and alliance efficiency is high. In contrast, if an alliance entry is not favored, the firms' relative operational efficiency is crucial for them to decide whether to enter the market independently under moderate spillover conditions. Finally, we show the implications of market entry strategies for managers.

中文翻译：

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存在市场溢出和效率差异的市场进入策略

公司结成各种联盟或利用品牌延伸进入新市场，以提高其运营效率并创造积极的溢出效应。然而，他们并不总是了解这些策略对市场进入和多市场竞争的影响，因为产品在一个市场的销售会对其他市场的产品销售产生负面的溢出效应。我们提出了一个分析框架来检查竞争公司是否以及如何（即通过选择联盟进入或独立进入）在市场溢出发生的情况下进入市场，当一家公司进入溢出产生市场以销售可能增加或降低消费者对一级市场产品的支付意愿。我们的分析表明，在产生溢出的市场中，企业的运营效率（或质量差异化能力）各不相同，因此，市场溢出对企业的影响不同。我们确定了决定企业从不同进入策略中受益的关键因素，例如议价能力、一级市场的品牌价值差异以及效率和溢出的程度。具体而言，我们表明，如果负溢出小且联盟效率高，企业将更愿意选择联盟策略进入产生溢出的市场。相反，如果联盟进入不受欢迎，则企业的相对运营效率对于他们决定是否在适度溢出条件下独立进入市场至关重要。最后，