A Company Journey - Step 2: Market Entry Strategy

Introduction

When an organization has decided to enter an overseas market, there are a variety of options open to it. These options vary with cost, risk and the degree of control which can be exercised over them. The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of the former, or countertrade, in the case of the latter. More complex forms include truly global operations which may involve joint ventures, or export processing zones. Having decided on the form of export strategy, decisions must be made on the individual distribution channels.

Choosing the market entry mode should not be a bargain. The right market entry mode will strongly support the entry of a company’s products, technology, human skills, management or other resources into a foreign country. This phase will prepare expanding businesses to venture in a foreign country through analyzing the specific target market, identifying the source of the company's resources, and the means of business ownership. In this way, the business can have a smooth entry given the necessary planning and right strategy.

Definition of an Individual Market Entry Strategy

Opting for the right market entry mode is a multifaceted phenomenon which is influenced by host country environments, firm’s characteristics, international experience, risk preference and nature of firm’s activity as well as motivation. Hence, to successfully expand an existing company to a new market is not easy. Especially when planning and executing a market entry strategy with internal resources from the inside out, important connections and information might be overseen. Any business wishing to go international faces issues of marketing, sourcing, investment and control. The questions of which countries and segments, managing and implanting market effort, how to use intermediaries or go directly, with what information, making or buying products, joint venture, global partner and ownership become issues for potential business going international.

There are frameworks to be used to extract insights. However, the difficulty lies on the analysis of these insights and how you can go forward based on the data and analysis that you have. The process of search, evaluation, and selection plays a major part to better understand what is lacking and what you need to do. Many business owners do not understand the different methods of foreign market entry leaving them into making wrong or unyielding result.

As an expanding company, there's no doubt that you'll need enough information. However, the question is whether this information will let you re-think about your company's current situation and may be considered beneficial to your company's success. Therefore, it might be therefore challenging to extract insights and how to make possible decisions around these issues. The best thing is getting to know well strategies for foreign market entry and perfectly make the best for your business.

Our Service

Consultinghouse’s management consultant will share their expertise in designing a model that will help access the right market and push through foreign market entry problems like getting targeted audience, smooth channel for products, feasibility spending and security control. Deciding on the best type of business is sure with the concrete data Consultinghouse will generate to take your business to its right destination.