Strategies of Enter to a New Market

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83 The Romanian Economic Journal Strategies of Entering New Markets Mihaela Belu Andreea Raluca Cărăgin Entering new foreign markets may be achieved in a variety of ways. Each of these ways places its unique demands on the company in terms of organizational and financial resources. Most of the times, entering international markets is not a matter of choice but of necessity to remain competitive in new or established markets. Our paper is going to analyze the possibilities that a company has when entering a foreign market, decision that is very important and which involves market assessment and analysis. Key words: Uppsala Model, Birkinshaw Model, exporting, franchising, licensing, strategic alliances JEL classification code: F21, F23,…show more content…
O synthesis presentation of the two theories - the Uppsala Model and the Birkinshaw Model– is illustrated in figure 2. Year XI, no. 27 (1) 2008 86 The Romanian Economic Journal Figure 2 Static aspects Physical distance Not knowing the market Dinamic aspects The relation headquarters –subsidiary The role and the responsability of the local partner The local environment Risk level Continuity Aquisitions /Mergers Withdrawal Regarding the internationalisation process, the company has more options (see figure 3): the first choice is represented by the development of the existing markets and it is being used by companies that are acting on highly competitive markets; the second choice – the company can choose to develop its activity on new markets, similar to the ones they are already acting on – in this case, they are usually choosing to export their products; the third strategy is developing a new line of products similar to the ones they already have and which will be sold on similar markets- in this case the company can choose between strategic alliances: creating a joint venture or licensing . Year XI, no. 27 (1) 2008 87 The Romanian Economic Journal Figure 3. Foreign market entry methods Distant markets Market development Strategic alliances Aquisitions – Foreign Direct Investments Strategic alliances Aquisitions – Foreign Direct
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