Page 1 of 18 The Use Of Qualitative Research To Develop A Computational Model For Dynamic Entry Deterrence In An Emerging Market Lee, C. B. a , Binner, J. M. b , Murphy, W. D. c and Fletcher, L. R. d a School of Mathematics and Computing, University of Derby, UK. b Department of Finance and Business Information Systems, Nottingham Trent University, UK. c The Derbyshire Business School, University of Derby, UK. d School of Sciences, University of Salford, UK. Abstract This paper applies game theoretic analysis to shed new light on the dynamics of market share within a contemporary, real life, entry deterrence situation. The study evaluates the market share where new entry has just occurred and considers the resulting interaction between prices, volume of business and cash flow. Insights are gained into the success or otherwise of Government intervention in the National Health Service (NHS) market from a business economics perspective. Qualitative and quantitative methods have been used to develop a mathematical framework for the analysis of strategic entry deterrence. Insights gained from Selten’s well known chain store game and a related model proposed by Waagstein are used to highlight the critical importance of enhancing a stock of knowledge and goodwill through strategic investment in information technology based service development. This study builds on previous work that proposed a method to evaluate the strategic investment profile that minimises the total investment required for dynamic entry deterrence. We extend current theories and develop a mathematical framework for evaluating market share through the application of findings from a qualitative case analysis of a single NHS pathology laboratory. The effect of a new entrant is modelled as a perturbation of a pre-existing stable Nash-Cournot equilibrium in an oligopoly-type market and is influenced by market forces subject to Government regulation. The framework emphasises the importance of using qualitative research in order to identify the elemental parameters for the particular organisation under study. Credibility for the resulting