Foreign Market Entry Strategies

Abstract

This paper discusses issues surrounding foreign market entry. Initially, the paper attempts to determine why and how a company makes a decision to enter a foreign market. Then there is a discussion of the timing and scale of entry which must be considered. Next is a discussion of government resources and organizations that can assist in entry decisions. Modes of entry are then examined followed by three case studies in foreign market entry.

Research on Market Entry and Environment

“…Licensing has been found to utilize very little investments and has high returns on investments in the market. The other advantage is that the licensee will also take care of the marketing and production costs involved [8] . However, the main disadvantage of this approach to the market is that in some cases the foreign company may not produce goods with the same standards that the original company is producing, and this may lead to market loss and bad reputation of the products from the original company.…”

“…Mergers and acquisitions can take place in the following ways. These are, by purchasing assets, exchanging shares and assets, purchasing common shares and through the exchange of shares and assets [8] .…”

“…The international trade environment is also another environmental factor that is affecting the market entry strategies in the 21st century [8] . Taking the example of the prevailing trade relations between the US and the Chinese companies especially in the tech industry, exports between the two countries have been affected by the sanctions and tariffs that both companies are imposing on each other.…”