Methods of exporting and entry strategies - Choosing an entry strategy

4 important questions on Methods of exporting and entry strategies - Choosing an entry strategy

What is a distribution channel?

A system of marketing organizations which links the producer with the end user abroad.

Which factors might influence the choice of entry strategy?

text-decorationInternal factors
  1. The size of the company
  2. The nature of the company
  3. The experience of the company
  4. The nature of the product
    - Nature of the product
    - Product differentiation
    - Phase of the product life cycle

text-decorationExternal factors
  1. Socia-cultural aspects
  2. Market size & growth
  3. The situation in the foreign market
  4. The marketing objective

What form of export results in the least commitment?

Indirect export results in the least commitment, whereas direct investment in the form of an own factory in a foreign market means extensive (structural) commitment.
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On which determinants depends the extent to which a company is willing to tie itself to the foreign market?

  1. Location
  2. Company's capacity
  3. Acceptable risks

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