Entry Mode Strategy

Entry mode

According to Ghauri and Cateora (2014) there is a lack of knowledge of markets in foreign countries. After the decision about going abroad, one must decide what kind of market is attractive and what kind of market entry is most convenient. Since we are seeking customers in Moscow that are in need of extra security when going out, our entry mode strategy is “market seeking” looking for considerable customers. To succeed with this strategy it is important to know whether we would be the first foreign company with our product, since it can entail something that is called “first-mover advantages” (Ghauri and Cateora, 2014). This means that if our product will be accepted and appreciated by the Russian market, it can gain a large market

However we are a start-up company, launching our product at an emerging and foreign market, with the intention to spread to other markets once established in Russia. Therefore, we have decided in this early stage to do standardization.

Since we plan to expand to other markets in the future we focus on standardization with some local adaptation. As Ghauri and Cateora (2014) states, standardization and adaptation can be beneficial from several points of view; transfer of experience and know-how across countries and create a uniform international image of the brand etc. We focus on the brand aspect of the standardization, meaning we are creating a brand that we believe would be suitable for other markets than the Russian one. Future decisions regarding standardization/adaptation include, according to Kotler and Keller (2012), product, communication, price, distribution channels and

By establishing relationships with actors that are associated to your business you gain an advantage on building your position (Elg et al, 2008). Therefore, our aim is to establish relations with local contacts and communities. The position of a company entering a new market depends on the “matching activities” it develops. This means that it is really important to create relationships with local social actors in order to gain their support (Elg et al, 2008) since they are the ones who can influence consumer’s support as well. To begin with, since our target is women aged 18-25 who do not necessarily have their own source of income but must ask their parents to provide them with money, we also have to build trust to parents. Moreover, we will collaborate with local NGOs that support women’s safety. Since our product has to do with strengthening women’s safety, we will collaborate with Moscow's police in order to gain their support in advising women citizens to purchase it. Lastly, we will build relationships with Moscow’s universities in order to help us promote our safety tool to students aged