Market Entry Strategies

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Introduction Market entry strategies refer to modes of accessing a share of clients en masse in a new environment. This paper will give an overview of different market entry options available and their extent of applicability in the Abu Dhabi National Hotels Company’s effort to enter the US market. It will also evaluate Abu Dhabi National Hotels Company by considering indirect market entry options in entering the US market. Market entry strategies Market entry strategies can be divided into two broad categories: indirect and direct market. In choosing either of these, one should have analyzed the company in context using various analytical tools. The analysis should focus on the…show more content…
The firms sought after in this strategy are those with longtime the experience. This method also involves the lowest risk factor for companies with no foreign experience like in this case of Abu Dhabi National Hotels (Giligan1986:101, Zisa, 2008:12). Direct Exporting This mode of accessing the foreign market involves high costs in transporting and marketing. The firm here manufactures goods in one country and then incurs the cost of marketing them abroad. This may take place through sales by foreign distributors, sales agents, overseas sales subsidiaries (Chee and Harris 1998:294). Strategic Alliance Another alternative would turn out to be strategic alliance. In this strategy, the company would form an alliance with its potential competitors in the working environment.

Conclusion The US is one of the world’s economic towers. Abu Dhabi National Hotel Company rationale can be justified by the fact that there is a potential market in America. The state also enjoys stable politics although currently there are uncertainties linked to the politics of this world military superpower. That is why franchising or licensing would be a likely method for the Abu Dhabi Hotel Company. Besides, strategic alliance and creation of mergers would cushion the Hotel

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