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Market Entry Methods

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Many organizations are expands their operations in international markets basically for increasing the revenue by increasing the market penetration. Among the risks available in international market political risk is considered as highly important. The proper identification and measurement abut the key political risk in particular market could help manage them on behalf of overcome or reduce its potential damage. In international market entry methods are highly concerned and the many international organizations uses different entry methods to reduce the risks and complexities in different markets. Franchising is one market entry method that many organizations follow, in service industry franchising plays effectiverole in international marketon …show more content…

The GDP growth rate of Indonesia is around 5% - 6% for last three years and the consumer price inflation rate is around 4% - 7% which is considered as favorable for the growth of many …show more content…

The rising of the income levels, population growth, expanding the middle class population, urbanization and changes of lifestyle are considered as factors create much favorable environment for modern retail sector in Indonesia. In the AT Kearney's Global Retail development index year 2014 Indonesia is indexed in 15th position among the developing nations as a retail investment destination. Figure 1: Opportunity in marketing mix in Asia Pacific Political Risk in Indonesia Indonesia is considered as the world largest democratic country which is highly industrialize in past 20 years. According to the world political risk maps in year 2014 from Marsh and Aon has categorized Indonesia respectively under High Risk and Medium Risk categories. In Indonesia many industries are vulnerable to key political risk like political instability, national economic policies, corruption, strikes and terrorism. Figure 2: Political Risk Summery (Source: AM Best) The political instability in Indonesia is still in lower than the average of the world even though the political stability index increasing positively in past 10

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