INTERNATIONAL MARKET ENTRY STRATEGIES

International Market Entry Strategies

Introduction2

Discussion2

International Market Entry Strategies2

Direct Exporting2

Licensing2

Joint Ventures2

Foreign Direct Investment2

Conclusion5

References6

International Market Entry Strategies

Introduction

International market entry strategy is the approach that firms undertake to deliver goods and services to a target market place and market their produce internationally. Expanding into global markets intends to establish and manage contracts in a foreign nation. There are many firms that function well in a niche marketplace without ever penetrating into novel marketplaces. Some firms attain increase in sale volumes, brand recognition and business immovability by stepping into a new international market. It is important to conduct a thorough analysis of possible client and rivals before developing market entry strategies (Terpstra & Sarathy, 2001). There are several features that are considered imperative to make a decision regarding the feasibility of getting into a foreign market, like trade obstacles, local understanding, price localisation, rivalry, and exporting grants. Being a manger of a global corporation, this paper will discuss in detail four market entry approaches in which company and its products would get maximum advantage. To choose the best approach, a corporation must think about the marketplaces it has chosen, the goods or services it would like to put on the market and its general objectives for global business. The scope of factors to think about may appear demoralizing, but without a complete study of the circumstances for every prospective marketplace, a corporation may choose a wrong approach.

Discussion

International Market Entry Strategies

There are several manners in which a business can penetrate a global marketplace. No single marketplace entry modes activates for all global marketplaces. Direct export entry mode may be the most suitable approach in one marketplace whereas in another one may require to setup a joint business enterprise and in another one may well authorize its production. There will be a range of elements that will manipulate our decision to select most suitable entry mode, together with, but not restricted to, tax charges, the level of adjustment of company's product requisite, advertising and transport overheads (Geetanjali, 2010). Despite the fact that these elements may well raise company's expenses, it is projected that the increase in sale volumes will counterbalance these overhead charges. There are four main foreign entry modes that must be considered by our company, detailing their merits and demerits to make a smart choice (Chen, 2006). The choice of how to penetrate an international marketplace can have a considerable influence on the outcomes. Spreading out into global marketplaces can be attained by the use of the following four entry modes. They are:

Direct Exporting

Licensing

Joint Ventures

Foreign Direct Investment

Direct Exporting

Direct export activity refers to sell openly into the marketplace one has selected to make use of in the first case with existing sources. A number of firms, once they have developed a sales plan fall back on negotiators and/or middlemen to stand for them further in that marketplace. Representatives and middlemen work directly with company in demonstrating its wellbeing. They turn out to be the main element of the business and as a result it ...