Foreign Market Entry

801 Words Feb 26th, 2018 3 Pages
There are different steps to entering a market abroad, and there are different strategies to look at, as they all vary. There is no single approach to enter all forms of international business. Many benefits come from expanding a business globally. Making the move into foreign markets will increase the size of an organization, their profits, and the overall global economy. A company must determine trade barriers, the different risks associated with their entry, and develop a strategy (Hill 2008). Steps to entering the foreign market vary, but here are six basic steps to consider: First the organization needs to assess their competitive advantage. Second determine the different markets to enter and what advantage and disadvantage each market offers. The third step is to figure out which product or line an organization will enter the market with. Fourth step is to make an evaluation of the resources needed. Step five is what the limitations are going to be for the organization. Finally, step six is to choose what method of entry is the best for the business (Sjolander). Once each of these steps are complete, a company is ready to enter the foreign marketplace. From the six steps to foreign market entry, step six was choosing what method is going to be used. To determine what method of entry to use, an organization has six options to choose from and they include exporting, turnkey projects, licensing, franchising,…