Int MKTG - Entry Strategies
Int MKTG - Entry Strategies
MARKET ENTRY
STRATEGIES
International Market-Entry Strategies
When a company makes the commitment to go international, it
must choose an entry strategy
Political experience
Economic Flexibility
Operational
Production and shipping
costs
INTERNATIONAL MARKET ENTRY
Root (1994) defines the market entry strategy for
international markets
“as a comprehensive plan which sets forth
the objectives, goals, resources and policies
that guide a company’s international
business operations over a future period
long enough to achieve sustainable growth
in world markets”.
Mode Of Entry Determined By:
The Ability And Willingness Of The Firm To
Commit Resources
The Firms’ Desire To Have A Level Of Control
Over International Operations
The Level Of Risk The Firm Is Willing To
Take
Alternative Market-Entry Strategies
• Import regulations may be imposed to protect health, conserve
foreign exchange, protect home industry, or provide revenue in
the form of tariffs
• exporting
• contractual agreements
• strategic alliances, and
• direct foreign investment
Exporting
• Exporting can be either direct or
indirect
• In direct exporting the company sells
to a customer in another country
• In contrast, indirect exporting usually
means that the company sells to a
buyer (importer or distributor) in the
home country who in turn exports the
product
• The Internet is becoming increasingly
important as a foreign market entry
method
Contractual Agreements
Contractual agreements are long-term, non-equity associations
between a company and another in a foreign market