What Are The Key Elements Of International Market Entry Strategy

What are some factors companies (and your learning team) need to consider before attempting to enter foreign markets? Assuming you were setting up a market program for a product in a foreign country (and you are), what should you take into consideration? Assume you are developing an advertising strategy for the promotion of a new product (and you are). What are some things you should consider?

It plays a great role in changing the psychology of consumers to convince them to switch brands

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:

We found innovation, cost reduction and market conditions as key elements supporting a successful internal strategy and strategic alliance and diversification to be among the most widely applied strategies for a foreign market penetration and development, while fusions and licenses were the least preferred.

As discussed in Chapter 21 of our text book, any company that is looking to expand globally must make five key decisions. A firm must decide if: a) they really want to expand to the international market; b) they

The four basic strategies used by MNC’s are international strategy, multi-domestic strategy, global strategy, and transnational strategy. Global strategy is an integrated strategy based primarily on price competition, therefore it is most commonly applied in situations where the need for integration is high and awareness of differentiation is low. Multi-domestic Strategy is differentiated strategy emphasizing local adaptation. Multi-Domestic Strategy is the opposite of Global Strategy, it is typically implemented when the need for differentiation is high but the concern for integration is low. International Strategy is a mixed strategy combining low demand for integration and responsiveness, it incorporates those cases in which both the need for integration and awareness of differentiation are low. Transnational Strategy is the integrated strategy emphasizing both global integration and local responsiveness. The need for integration and differentiation are both high. There is a strong need for integration in production along with higher requirements for regional differentiation in marketing.

There are internal and external factors that drive companies to approach the global market in a different way as compared to earlier description of traditional stage model. The external factors include globalization, digitalization, outsourcing, virtual economy and development in communication standards while the internal factors include operations, language, culture, local adaptation (Oviatt & McDougall, 1994).

Agarwal, S & Ramaswami, S, (1992) ‘Choice of Foreign Market Entry Mode: Impact of Owenership, Location and Internalization Factors’, Journal of International Business Studies, 23, (1), First Quarter.

As globalization intensifies, the business community tends to expand its operations towards the international market. This can be as a result of intense competition in the local market, need to increase sales and profits margins, to enhance the company’s prestige, to create jobs, to increase the value of the entrepreneurs among others (Bodie, 2013). Before going global, the company’s executive has to consider factors that favour or hinder their goal towards achieving international recognition in trade. This paper reviews the topic on “Making an Investment in a Foreign Market and factors considered.

Okoroafo produced an article detailing a four step strategic model that firms should take into account when deciding modes of entering foreign markets. The model consists of four steps:

Measuring a potential business venture has many aspects which the international manager must be aware of in order to convey the correct information back to the decision makers. Being ignorant to any of the aspects can lead to a false representation of the project, and hence an uninformed decision being passed. In order for a business to survive it must grow. For growth to be optimal, management must first be able to identify the most attractive prospective leads. The country as a whole, specifically geography, government, and financial aspects must be looked at in order to yield the best possible picture of the market a company wishes to enter. Concentration should be placed on gathering reliable facts

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy)

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.