Entry Strategy Analysis

Entry strategy

10.1 Defining Entry Strategy

When the analysis is done next major step is to determining the strategy of entering the international market. The appropriate entry strategy will assist to achieve the below challenge as well as the given below will be useful for determining the right choice.

• Which foreign market to enter

• On what scale to enter

• And the choice of entry mode

The Very first question from the above is to identify, which foreign market to enter and it has to be derived by an assessment of relative long run growth profit potential. It will be also integrated with the political, economic and legal environment of the selected company as well as the relationship between the 2 countries.

The next point is the scale;

Company can implement their own marketing strategies.

2. It can obtain a good idea about the consumers, market places and market segments.

3. Company can increase the relationship and awareness between the customers of that foreign country and company.

4. Possibilities of new business opportunities.

5. Company has possibilities to increase business through innovations.

6. company can reach higher profits and higher market share

Indirect exporting strategy

Company does not involve for exporting and marketing functions directly. This is a low risk method. Company does not need an office and foreign employees at relevant foreign country. Management of the company has to select another suitable sales and marketing company from that foreign country to conduct its exporting and marketing functions.

Joint ventures

This mode is a kind of partnership agreement between foreign and domestic two companies. Both companies can achieve the profitability by performing as a one company in a same market. In this strategy, both companies have to encounter losses, risk and profits of marketing.

Licensing

Company offers their own product related necessary rights for another company to use their products. It is significant to get a high market share as well as to expand the businesses. There are some categories of licensing like manufacturing licensing and marketing

There are several advantages of this strategy. It can be mentioned as follows,

• Potential profits are greater because you are eliminating intermediaries.

• Greater degree of control over all aspects of the transaction.

• We know who your customers are.

• Our customers know who we are. They feel more secure in doing business directly with us.

• Business trips are much more efficient and effective because able to meet directly with the customer responsible for selling the product.

• We know whom to contact if something isn't working.

• Customers provide faster and more direct feedback on the product and its performance in the marketplace.

• We get slightly better protection for our trademarks, patents and copyrights.

• We present ourselves as fully committed and engaged in the export process.

• We can develop a better understanding of the marketplace.

• As our business develops in the foreign market, have greater flexibility to improve or redirect marketing