Market Entry Methods

Introduction

Organisations have a choice of a wide fly the coop of market approach strategies in assign to expand their operations internationally. The mode of entry into an international market is a observation of the relative importance assigned to the following criteria:

        The level of examine the organisation wishes to exercise over its interests/concepts foreign

        The amount of resources it is willing to confide to international expansion

        The flexibility it wishes to retain to allow its interests internationally to qualifying their activities or operations quickly and at low cost

        The finis of payback require to meet overall sales/ product targets

Market Entry Methods

Cunningham1 (1986) identified five strategies used by firms for entry into new distant markets:

i)         Technical innovation strategy - comprehend and demonstrable superior products

ii) Product adaptation strategy - modifications to existing products

iii) Availability and security strategy - overcome transport risks by countering perceived risks

iv) Low equipment casualty strategy - penetration price and,

v) Total adaptation and conformity strategy - foreign manufacturer gives a straight copy.

There argon a variety of ship canal in which organisations can enter foreign markets.

Exporting

Exporting is the most tralatitious and well established form of operating in foreign markets. Exporting can be defined as the merchandising of goods produced in one country into another.



Whilst no direct manufacturing is required in an overseas country, significant investments in marketing are required. The tendency may be not to obtain as much detailed marketing information as compared to manufacturing in marketing country; however, this does not negate the need for a detailed marketing strategy.

The advantages of exporting are:

        manufacturing is home ground thus, it is less risky than overseas based

        gives an opportunity to learn overseas markets before investing in bricks and mortar

        reduces the potential risks of operating overseas

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