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Table of contents INTRODUCTION
This paper focuses on closer look at market entry strategies to the countries of Commonwealth of Independent States (CIS). Globalization process leads to the increased level of affiliation and interdependence of the world. This phenomenon has resulted in companies to confront with new difficulties. These challenges occurred not only for large corporations, but as well for medium-sized ones. They were pushed to grow, to expand into new markets – to foreign ones. Most of the companies striving to enter the markets of post-Soviet Union countries experience strong barriers as absence of relevant experience, scarcity of managerial skills of local labor pool as well the levels of corruption. Yes, there
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Thus, different kinds of available market penetration strategies from the perspective of entering into the CIS countries, the advantages and disadvantages hereof are the main focus of this paper.
The marketing strategies reviewed in this paper aim to provide the reader with analysis of the strategy overall and recommendation in regards of its implementation in the countries of the CIS.
In importance, this paper aims and helps to understand the challenges to be faced by foreign companies going into the market of one or several of member states of the CIS, how these issues can be lowered by choosing the relevant entry mode.
Considering that the member states have many common characteristics and elements, as well their roots come from the USSR and have several differences mostly in respect of culture, and that ideally entry into each of these countries shall be analyzed separately, I will analyze the topic mostly with approach of entering the Russian market, as it provides us with the largest territory in the world, therefore with the biggest consumer market among the CIS countries. The Commonwealth of Independent
Multinational corporations of emerging market are adopting strategy for globalization. It is difficult for any multinational corporation to directly enter any world market because the level of risk involved is very high. There are few entry strategies adopted by many multinational corporations to enter new countries and regions which involve less amount of risk. There are many strategies to enter a foreign market and the following are few important strategies adopted by MNEs of emerging market
Once a decision is made, the process of entering an emerging market can be complex. Regulation, trade barriers, tax, political variables and social issues - from HR to CSR - should all be thoroughly investigated. But with specialist help the challenges are surmountable and the potential rewards significant.
simplicity of market entry: Advances in telecommunications, computer technology and transportation have made entry into foreign markets by
It has been presented by several researchers that the barriers to entry are significantly higher for SMEs than for bigger firms. The fundamental underlying assumption embraced by researchers is that SMEs regularly lack resources and capacities that confine the likelihood to capture business opportunities. In the meantime, Fill states that these barriers alone "are not enough to act as preventative measures to stop the firm entering and progressing through the various stages of internationalization". In any case, the target to comprehend these imperatives and to propose proper political measures has pulled significant consideration of researchers. Quite, some researchers recognize "Exogenous" or "Endogenous" barriers to entry. Exogenous barriers are identified with the fundamental market situations and firms are not ready to control these barriers. Then, endogenous barriers are made by incumbent firms through their techniques and market conduct (Korsakiene,
Developing strategies in relation to any application of marketing suggest a marketer’s ability to comprehend and align business practices with the need of the consumer and business simultaneously. Strategies present challenges whether domestic or international markets are the emphasis. The ability to set customary prices, have market presence, encouraging advertisements and publicity, understand the competition, develop accurate communication, a complete SWOT analysis including domestic and international markets, and customizing the target market, present boundless opportunity that consumers appreciate and market recognition. At each stage of
To evaluate a multinational company (MNC) and its related functions, it is important to first define the topic. Thus, a MNC is a company that is operating in several countries but managed from one domestic country. There are many reasons for companies to internationalize. This can include increasing profit margins, gaining more market power, improving the reputation of the company or simply to exploit new locations with various benefits. In the modern economy, internalization is supported and enhanced through globalization. When companies decide to internationalize, the first step is to determine the structure and hierarchy of the company. There are many different operating modes that can be chosen. This can include but is not limited to licensing, franchising and international joint ventures. With reference to the operating modes, or often known as ‘entry modes’, there are two major categories which can be drawn upon. Non-equity modes are one option referring to operating modes, whereas equity modes include a high risk-level and high control (Gooderham, Grogaard, & Nordhaug, 2017).. In the following paragraphs the most important operating modes will be explained.
There are a variety of elements to consider when entering any of these three environments, both at the macro level of the European Union (EU) and the meso level of the individual national context. An MNC penetrating the EU is required to take the common legislation across the countries into account while also still adapting the norms and laws of the individual national contexts in the EU.
When pursuing international growth, there are market specifications, such as technological, political-legal and sociocultural conditions11, which need to be taken under consideration as whose recognition is significant. While the technological and political-legal progresses are under continuous development (e.g. internationalization, amalgamation of countries/regions, trade zones), intercultural differences are nearly steady but due to numerous dimensions not easily measurable and of high complexity. However, related to the general decision and first steps of market entries it is essential to be fully aware of all conditions of the target
This course reviews the organization for international marketing, foreign demand analysis, product development and policies, trade channels, promotion policies, pricing, and legal aspects. Emphasis is on development of effective international marketing strategy addressing the major global market areas (Europe, Africa, Asia, and the Americas).
The need for a solid market entry decision is an integral part of a global market entry strategy. Entry decisions heavily influence the firm’s other marketing-mix decisions. Company can enter International Market with many ways, some of them are as follows:
Many factors influence this BRIC nation’s growing market share. In order to understand the market one must explore the country itself, it’s culture and current Political, Economic, Social and Technological advancements.
Companies entering foreign markets may face problems or increased costs because of the business environment and the way in which the companies operate. Marketing services might be expensive and certain payment mechanisms may be unavailable. Some of such difficulties include
Globalization Operation, from the 1990s became the buzzword. With increased trade, investment and international financial capital flows, the world economy is undoubtedly steadily toward globalization. Foreign goods purchased by consumers increased, more and more transnational company, people feel the world is getting smaller, more intimate contact with each other. Following by China's reform and opening the market, China's growing economic strength and international competitiveness of Chinese enterprises is also rising, the number of multinational companies have increased, but there are still less competitive and dynamic issues such as inadequate in the development process . This article on how big of multinational companies
Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.
There are many different types of market entry strategies that may be implemented by a foreign firm in an emerging country. Amongst the most popular are: