What Are The Key Elements Of International Market Entry Strategy

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1.4. Key elements to the choices of international market strategy.
What are the factors that a leader needs to consider when deciding on a strategy or method for entering a market? The decision is made shortly after the market research is finished and the decision to go abroad is established. In the preceding two steps, enterprises had surveyed the national environment of the market (including: economic environment, social culture, political risks, imposed regulations on the products of the business or limits or restrictions on foreign firms’ involvement in commodity markets) and market characteristics (demand, supply, market share, competitive index, customer loyalty, domestic and foreign).These factors are considered as external factors to the decision on market entry strategy. Internal to firms, managers take into account these following factors: market entry objectives, firms’ capabilities of capital and other resources commitment, international experience, technological capabilities, speed of entry, level of control.
Market entry objectives
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They are to serve as a factor in screening the right markets and the mode or strategy to make entry. For seeking markets, most methods could be a suitable choice. However, when it comes to resources seeking, export will never be enrolling in the potential list. Instead, equity modes are effective strategies. Thus, objectives set up for a target market will help eliminate inappropriate strategies and select out potential ones. Some businesses set more than one goal for their target markets, which may be equally important or one of them is preferred. In this case, businesses can choose a strategy that can serve all objectives, or select more than one method and implement at different
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