Decisive Factors Positive Analysis Of The Entry Barriers In Chinese Tea Processing Industry

Chinese refined tea processing industry were constantly developed in the back groundof market economy in the past few decades. However, there still are some problems, suchas the small-scale of the enterprises, the influx of a large number of small businesses andalso the phenomena of low level of market competition, disorder production and lowefficiency of the industry.Most studies have only raised these phenomena in the Chinese refined tea processingindustry, but which factors caused the low entry Barriers, and which impacts of the lowentry Barriers brings are not mentioned. So it is necessary to do intensive research on theinfluencing factors of the low Barriers of Chinese refined tea. There are not only practicalsignificance on guiding the refined tea processing industry positively but also theoreticalsignificance of entry Barriers’ factors in different industries, especially in small industry.This paper analyzed the key decisive factor of the Barriers in the Chinese refined teaprocessing industry, the effect it brought. The results show that, the entry Barriers of theChinese Refined Tea Processing Industry present low and the negative effect plays theleading role. Finally according to the analysis, we proposed countermeasures of theChinese refined tea processing industry.There are nine sections in this paper:The first part is the introduction. This part mainly introduces the background,significance, paper structure,innovative technologies routes and inadequate of the paper.The second part is the review of entry Barriers theory. This section mainly gives itsstrategy and characteristics of the definition, the decisive factors of entry barriers and theeffects it brings in the past research.The third part is the theoretical basis. This section introduces theoretical basis of theentry barriers, including the definition used, industrial organization theory about entryBarriers.The fourth part is the necessity of the research of entry barriers in the Chinese refinedtea processing industry. This section introduces the necessity of the research from theorganization status and the condition of entry of the Chinese refined tea industry.The fifth part is theoretical Analysis of the decisive factor of the entry barriers in the Chinese refined tea processing industry. The part analyzed the decisive factor of the entrybarriers from three important aspects: economies of scale, product differentiation, absolutecost advantage.The sixth part is the empirical analysis of determinants of barriers in the Chineserefined tea processing industry. This section is the empirical analysis of the factors ofindustrial barriers to entry: industry expected profits, the average size, capital intensity,market concentration, and policy factors, advertising and R&D spending, and the explainof it.The seventh part is the effect analysis of the low entry Barriers in the Chinese refinedtea processing industry. This part analyzed both positive, negative contrast and which playsthe leading role in the Chinese refined tea processing industry.The eighth part is the strategy of the low barriers in the Chinese refined tea processingindustry. According the empirical results this part gives advice and strategy for the Chineserefined tea processing industry.The ninth part is summary and outlook. That part summarizes the conclusions of thisresearch and the outlook of Chinese refined tea processing industry.