International Marketing Entry Strategies
TOPIC: STRATEGY OPTIONS FOR ENTERING AN INTERNATIONAL MARKET.
BY: RUGUMAYO ANDREW MPIRWE, MBA 11, MARKETING OPTION.
REG.NO. 2011/U/HD/390/MBA
KYAMBOGO UNIVERSITY.
INTRODUCTION
International Marketing Decisions
Today due to the rapid growth rate of globalization, all types of businesses are seeking to expand their operations across borders into the global market place. A firm after several considerations can choose an entry strategy to enter a foreign market, among the modes of entry is: Exporting, Lincencing, Joint venture and direct investment, strategic alliances among others that will be discussed later.
Reasons why firms get involved in international markets:
Chain of supply(in terms of raw materials),if there are shortage of raw materials in the domestic market ,a firm may opt for the international market, also if the firm has abundant resources the firm can produce locally and export to foreign markets.
Optimistic response: the managers and the share holders may have the ambition of going global as a strategic objective.
When the product cannot be sold in the local or domestic market: the product may have reached the maturity stage of its product life cycle, hence the need to find new markets for it where it can be rejuvenated and introduce it as a new product.
Additional volume: the firm may have surplus production which it may consider for the foreign markets for example in Uganda companies like Mukwano Group of Companies is now exporting to the Great lakes region.
Spreading business risks across wider markets, sometimes a firm may not want to keep it‘ eggs” in one”basket”especially when it has the capital base to operate in the foreign market for example Simba Telecom has extended its distribution and Telecom business to other African markets.
Gaining access to new markets, firm may have the objective of increasing its market share and the alternative to the domestic market is to go international.
A firm may go global with an objective
BY: RUGUMAYO ANDREW MPIRWE, MBA 11, MARKETING OPTION.
REG.NO. 2011/U/HD/390/MBA
KYAMBOGO UNIVERSITY.
INTRODUCTION
International Marketing Decisions
Today due to the rapid growth rate of globalization, all types of businesses are seeking to expand their operations across borders into the global market place. A firm after several considerations can choose an entry strategy to enter a foreign market, among the modes of entry is: Exporting, Lincencing, Joint venture and direct investment, strategic alliances among others that will be discussed later.
Reasons why firms get involved in international markets:
Chain of supply(in terms of raw materials),if there are shortage of raw materials in the domestic market ,a firm may opt for the international market, also if the firm has abundant resources the firm can produce locally and export to foreign markets.
Optimistic response: the managers and the share holders may have the ambition of going global as a strategic objective.
When the product cannot be sold in the local or domestic market: the product may have reached the maturity stage of its product life cycle, hence the need to find new markets for it where it can be rejuvenated and introduce it as a new product.
Additional volume: the firm may have surplus production which it may consider for the foreign markets for example in Uganda companies like Mukwano Group of Companies is now exporting to the Great lakes region.
Spreading business risks across wider markets, sometimes a firm may not want to keep it‘ eggs” in one”basket”especially when it has the capital base to operate in the foreign market for example Simba Telecom has extended its distribution and Telecom business to other African markets.
Gaining access to new markets, firm may have the objective of increasing its market share and the alternative to the domestic market is to go international.
A firm may go global with an objective
References: 1. International Marketing by Michael R.CZinkota. 2. Global Marketing by Warren J.Keegan, Mark Green, 3rd Edition. Prentice Hall. 3. Global Marketing: Foreign, local and Global Management by Jonny K.Johnson. 4. Building an Import/Export Business by Kenneth D.Weiss: Publisher: Willy.