Market Entry Strategies: International Marketing Management
Research Paper (undergraduate) from the year 2010 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1,0, University of Applied Sciences Fulda, course: International Marketing Management, language: English, abstract: Globalization has increased the competition amongst firms. There are more and more companies which are motivated to conquer foreign markets and enlarge their presence on these markets. For multiple reasons, companies adopt modes to enter foreign markets and find new channels of distribution. Choosing the right and appropriate market entry strategy has a growing importance. As a matter of fact, companies should align their strategy to their objectives and adapt them to the foreign markets environment. There are numerous different entry strategies which are all linked to different entry modes, different amounts of risks or costs. From the least costly mode to the most expensive one we distinguish three main strategies: Export is characterized by the transportation of finished goods from one country to another. The distribution on site is done by an intermediary or by foreign based distributors or agents. Joint Venturing includes different characteristics of various joint contracts with firms to produce or promote services or products. Direct investment is, when a company decides to invest directly into a foreign country by either establish an assembly operation, a wholly-owned operation as well as a merge or an acquisition. Each of the market entry strategy has both, advantages and disadvantages. The less costly the strategy is, the less control the company has over the distribution channel. Consequently, the company depends more or less on foreign institutions or foreign partners. All in all a company has to figure out for itself which strategy to choose, according to its particular situation, financial as well as economical and environmental. Therefore, before entering a market, a previous comprehensive research and analysis of the target market and its economic environment is indispensable to achieve a successful launch into an unknown market.
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3.1.1 Indirect exporting 3.1.2 Direct exporting 3.2.2 Contract manufacturing 3.2.3 Management Contracting 3.3 Franchising Acquisitions Management advantages and disadvantages Albaum G amounts of risks Armstrong broker buyer Coca Cola companies gain companies to go company’s willingness competition amongst firms costly the strategy costs Deciding which markets Direct Investment distribution channel distributors Doole Duerr Duerr E economic environment enter a foreign enter foreign markets export buying agent export commission houses export houses foreign market environments foreign partners Fundamentals of Franchising Fundamentals of Market Furthermore Global Marketing go international Hollensen http://www.witiger.com/internationalbusiness/whyexport.htm importance International Export Management International Marketing Strategy investor Kotler Labor Economics Lamb less control licensing linked to different Lowe market entry strategy markets to enter McDaniel Mergers and Acquisitions MKTG operation Piggybacking political environment previous comprehensive research Principles of Marketing sell Strandskov Strategies INTERNATIONAL MARKETING target market type of franchising type of joint wants to enter Wholly-owned Subsidiary