Market Entry Strategies

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• This is a study that shows the various entry and expansion strategies that are available for a firm when choosing to go global or increase market share within the market.
• There are various strategies found out , they are : Exporting and importing , Joint Ventures, Strategic Alliances, Franchising , Licensing and Foreign branching.
• In exporting and importing, firms choose between direct involvement and indirect involvement. This is the level of involvement with the foreign customers. Most firms prefer direct involvement due to the costs and risk of having an intermediary do the communicating in the foreign market.
• Types of international intermediaries are export management companies and trading companies such as the
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• When a firm decides to do international business it faces a lot of decisions. The most basic is making the decision that entering international markets are in the best interest of the company.
• There are various criteria used when choosing an international market to enter, they are: proximity, stage of development, geographic region, language , government policies and laws , competitive situation and many other factors.
• There are various international entry and expansion strategies they are: exporting, importing, licensing, franchising, inter-firm cooperation and foreign direct investment (FDI).
• (Czinkota, Ronkainen, Moffett, Marinova, & Marinov, 2005) explains that firms can choose to be involved in exporting and importing in either a direct way or indirect way. Direct involvement is where a corporation directly works with the foreign customers or markets with the opportunity to develop a relationship.
• Indirect involvement is where an international firm uses an intermediary to get into the market and there is no contact between the foreign firm and the local customers (Czinkota, Ronkainen, Moffett, Marinova, & Marinov,
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The biggest difference between the two is that the multinational business has an equity and management position in the foreign firm this is in the joint venture kisses. A partnership between host- and home-country firms is formed, usually resulting in the creation of a third firm.
• The joint venture agreement allows the company more control when it comes to operations and the firm has more access to information on local market.
• The joint venture agreement is very much preferred because it allows the firm to avoid control problems that are associated of the other types of entry strategies. The host firm helps the multinational firm settle in the new environment. (Kiling, 1982).
• This agreement has is usually between two or more parties with shared interests in a project, thee parties are usually equally invested when it comes to time effort to innovate and the most obvious. Joint ventures can be used for small projects and ensure that they are successful but big corporations also use this form of agreement to be more
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