Factors to Be Considered When Entering a Foreign Market

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CHAPTER 1: INTRODUCTION1

1.1 Introduction1

1.2 Background to Topic1

1.2.1 Academic Importance of the Topic3

1.3 Research Aims and Objectives3

1.3.1 Objectives Explaining The Research Questions4

1.4 Research Questions4

CHAPTER 2: LITERATURE REVIEW5

2.1 Introduction5

2.2 Summary of Literature Review5

CHAPTER 3: METHODOLOGY7

3.1 Research Design7

3.2 Research Approach7

3.3 Research Strategy7

3.4 Type of data8

3.4.1 Data collection Methods8

3.4.2 Methods of Data Analysis8

3.5 Feasibility8

3.5.1 Timescale8

3.5.2 Access to Data9

3.5.3 Ethical Considerations9

References10

CHAPTER 1: INTRODUCTION

1.1 Introduction

This research work will be based on identifying the factors that are required to be considered while entering into international or global markets. The first chapter will be focusing on the background of the research, aims and objectives and will highlight the research questions.

1.2 Background to Topic

The companies make "international presence" for \three basic reasons; the desire to seek new markets, the competitive need to achieve lower costs or the desire to have access to natural resources stocks in other countries. No matter what the reason, an international strategy must focus wing situation and requires a careful analysis of the international aspects of the industry. It requires paying particular attention to the ways in which different needs and habits of buyers, to the distribution channels, the potential for long-term growth, to as driving forces and competitive pressures. In addition to the basic market differences between countries, there are four factors that are characteristic situation of international operations: preserves variations between countries, fluctuating exchange rates, trade policies of the host government and the pattern of the international competition.

Selection of markets for international activities of the company is one of the key decisions of its managers. Selection of foreign markets is a process of evaluating opportunities, leading to the definition of national markets in which the company will act as a competitor. This is also the process of understanding the requirements of foreign markets and assesses the capacity of the company to meet these requirements. However, with the emergence of the concept of globalization, most of the organizations have been planning to have their presence in global markets, but it requires a lot of research and in depth analysis of the potential market in order to be successful. From the researches it has been seen that most of the organizations that are successful in their home markets are not successful in foreign markets. The reason for their failure is not more than their poor information about the potential market and ignorance of the factors that could have helped them in getting their business stable. Therefore, this research study will be based on understanding such factors that have their impact of the business operations of the companies in international markets.

Most of the business organizations that have their presence in the global markets depend on what they decided to enter. In order to get their business operations in foreign markets they usually adopt two basic strategies to enter international markets. The first strategy, sure, is to choose a market similar to their own. An example of this may be a ...