Market Entry Modes & Strategies

Creation of a market entry plan,or creation of a market expansion plan, or an M&A plan

Step 1: The business strategy goals are to capitalize on specialty products and offer products for all incomes. The business strategy is a collaboration of the broad differentiation strategy and focused market niche strategy. The broad differentiation strategy concentrates on “seeking to differentiate the company 's product offering from rivals ' in ways that will appeal to a broad spectrum of buyers.” The focused market niche strategy principles are differentiation and concentrating on a narrow buyer segment that may outcompete rivals by offering niche members customized attributes that meet their tastes and requirements better than rivals ' products” (Thompson, Gamble, & Strickland, 2006, p. 114).

Being able to acquire a new market may bring those new customers to their current market.

According to Holt (2004), a brand can be defined as a term, name or a design that distinguishes product or service of one manufacturer from others. Brands are normally utilized in advertising, business and marketing. In accounting terms, brand is an intangible asset which is present within every organization. It is most valuable asset that is outlined in the balance sheet of a company. Brands owners need to effectively manage their brands in order to enhance shareholder value. Brand valuation is an important technique that associates money with a brand. Effective branding often results into high sales volumes of a particular product. A customer who prefers a brand is more likely to choose other products which are offered by the same brand. Brand can be stated as a personality that facilitates identification of a company, product or service. It even encompasses relation with other constituents like customers, partners, investors, staff, etc. Individuals distinguish psychological aspect of a brand from experimental

The company then decides on a market-entry strategy. This typically entails four avenues of entry into the international market. A). Market entry may be handled through exports, directly or indirectly. Internet sales and direct selling

As a result, historically small niche markets are gaining an increasing prevalence within the U.S. marketplace and have substantially higher buying power. If companies are to continue to thrive in this modern economic environment they must be able to recognize and understand the implications of these demographic shifts. This includes the ability of a company to improve marketplace understanding as well as to implement business practices that will retain a diverse and talented

Many businesses jump to the conclusion of thinking that if a company can be successful in one area, that it can be just as successful in another. Before making this assumption, businesses need to expand on potential challenges that they might encounter

Every company and/or organization starts and operates to achieve a single major goal, which is normally included in the company’s mission statement. Setting a goal, however, does not translate into success on its own; it is only the fist step. Understanding market segmentation is the second most important aspect of doing business. “Sellers and advertisers want to be able to determine what the potential market is for their product or service, as well as the best ways to reach potential consumers” (Terrell, 2013). Once a goal is set, an organization first must decide if it wants to operate locally, regionally, nationally, and/or internationally, as the size of the geographic coverage has a large

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:

Firstly, it is important to remember the current situation of Trader Joe’s in USA, the company has over 400 stores in 30 states and is the leader in customer service in USA. However, the company is not on the top ten supermarkets in sales category. Additionally, Trader Joe’s just operates in USA and does not have experience in other international markets. (Peterson, 2013)

It may be that you will only be competing directly against some of these because you will be targeting a particular segment of the market or offering services which are hard to find elsewhere”( Market Research- Estimating Demand, 2012).

Niche markets are an attractive opportunity available to small businesses that are forced to compete against the scale economies that larger competitors are able to achieve (Kotler, 2012). The choice to pursue a niche marketing strategy will not guarantee success, and, similar to any business decision, requires critical assessment. Fenix entrepreneurs had a bold vision of where they wanted the company to go. Utilizing local market, external resources and knowledge gained from working in the manufacturing and retailing industries the company was able to be successful.

A company that conversely was very successful in finding its niche is Geek Squad. When given the opportunity to expand they were hesitant, and took their time. They built their brand, then expanded, while GovWorks expanded before having a chance to see how the company would grow in the long-term.

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:

The reluctance of firms to change entry modes once they are in place, and the difficulty involved in doing so, make the mode of entry decision a key strategic issue for firms operating in today’s rapidly internationalizing market place.