Methods of entry
A well planned market-entry strategy entails an operator greater management over its market initiation and launch expectations, thus providing assurance to meeting financial targets. Businesses nowadays attempt to accomphlish increment in sales, brand awareness and business sustainability by breaking into new markets. Formulation of a market entry strategy requires an in depth analysis of potential competitors and likely customers.
There are numerous options to enter a ...view middle of the document...
The risks & benefits associated with each method are attributed to several elements. This includes the nature of the product or service you produce, the requirements for product or service support, and the foreign economic, political, business and cultural environment that the firm is seeking to enter. The ideal strategy is highly reliant on the firm's level of resources and commitment, and the level of risk that the firm is willing to take.
Many businesses select exporting as their entry strategy. Start-up costs and risks are kept to its minimal, and it is less complicated in comparison to the other methods. Exporting can be performed directly or indirectly. Via the direct method, the business extends its business plan to include exporting as a new activity and gathers knowledge and workers to execute the plan, i.e., locating foreign buyers, labelling product, making transportation arrangements, and invoicing. If the avenue of direct exporting is unavailable, firms can can consider indirect exporting via a foreign distributor.
Barriers to trade, Depth of localized knowledge, price localization, competitors, and export subsidies are some of the relevant factors MNCs consider when deciding which entry strategy to pursue.
Read more: http://www.oxbridgewriters.com/essays/international-studies/methods-of-market-entry-strategy.php#ixzz2BAk679D2