Market Entry Modes & Strategies
MARKET ENTRY
MODES &
STRATEGIES
CONTENTS
Chapter 1 Introduction to market entry
Chapter 2 Market entry modes
Chapter 3 Market entry strategies
Chapter 4 Risks involved in market entry
Chapter 5 Market analysis
Chapter 6 Suitability of different market entry modes in different markets
Chapter 7 Conclusion
Chapter 1
Introduction to market entry
A market entry strategy is the planned method of delivering goods or services to a target market and distributing them there. Importing or exporting services refers to establishing and managing contracts in a foreign country.
Many companies successfully operate in a niche market without ever expanding into new markets. The objective of this project is to study the different modes of entering international markets and what strategies to adopt in order to successfully penetrate and capture the intended markets. Some businesses achieve increased sales, brand awareness and business stability by entering a new market. Developing a market entry strategy involves a thorough analysis of potential competitors and possible customers. Some of the relevant factors that are important in deciding the viability of entry into a particular market include Trade barriers, localized knowledge, price localization, Competition, and export subsidies.
While some companies prefer to develop by their own their market entry plans, other outsource to specialized companies. The knowledge of the local or target market by those specialized companies can mitigate trade risk.
Decisions in the marketing area focus on the value chain. The strategy or entry alternatives must ensure that the necessary value chain activities are performed and integrated.
Objective of market entry strategy:
• minimizing uncertainties faced by new entrants,
• decrease financial uncertainties
• enable business plan collaboration and financial planning,
• Create launch efficiency by delivering a framework for
MODES &
STRATEGIES
CONTENTS
Chapter 1 Introduction to market entry
Chapter 2 Market entry modes
Chapter 3 Market entry strategies
Chapter 4 Risks involved in market entry
Chapter 5 Market analysis
Chapter 6 Suitability of different market entry modes in different markets
Chapter 7 Conclusion
Chapter 1
Introduction to market entry
A market entry strategy is the planned method of delivering goods or services to a target market and distributing them there. Importing or exporting services refers to establishing and managing contracts in a foreign country.
Many companies successfully operate in a niche market without ever expanding into new markets. The objective of this project is to study the different modes of entering international markets and what strategies to adopt in order to successfully penetrate and capture the intended markets. Some businesses achieve increased sales, brand awareness and business stability by entering a new market. Developing a market entry strategy involves a thorough analysis of potential competitors and possible customers. Some of the relevant factors that are important in deciding the viability of entry into a particular market include Trade barriers, localized knowledge, price localization, Competition, and export subsidies.
While some companies prefer to develop by their own their market entry plans, other outsource to specialized companies. The knowledge of the local or target market by those specialized companies can mitigate trade risk.
Decisions in the marketing area focus on the value chain. The strategy or entry alternatives must ensure that the necessary value chain activities are performed and integrated.
Objective of market entry strategy:
• minimizing uncertainties faced by new entrants,
• decrease financial uncertainties
• enable business plan collaboration and financial planning,
• Create launch efficiency by delivering a framework for