Market exit and barriers to exit: Theory and practice

This article examines market exit, barriers to exit, modes and strategies of exit, reasons for exit, and the consequences of exit through a literature review of the academic literature and the popular press. There is very little empirical research in this area. The article attempts to analyze the applications of market exit and barriers to exit theories, and consequences of exit with recent examples taken from newspapers and popular business magazines. Despite the fact that there are strong barriers to exit, companies are sometimes forced to exit markets. Market‐exit or product‐elimination decisions influence employees, distributors, suppliers, and customers. This influence is usually negative and is in the form of cognitive dissonance. © 2000 John Wiley & Sons, Inc.