Market entry strategies

7 important questions on Market entry strategies

What are the criteria to select an succesfull markent entry method?

  • Knowing the company's objectives and expectations
  • know the size and the financial resources of the company
  • what are the skills, abilities and attitudes.

What are the fundamental questions to decide on level risk and control?

  1. What level of control over our internet do we requirer?
  2. What level of risk are we willing to take
  3. what costs are we willing to make

What is indirect exporting?

  • Domestic purchasing -> produce available for export but does nothing to international marketing
  • Export management company (EMC)/Export house (EH)
    -> intermediary who helped by exporting
    -> package deal
    -> spreading costs 
  • Piggybacking -> using another distribution network
  • Trading companies -> colonial
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What is direct exporting?

  • Agents -> independent individuals/firms -> obtain orders for commission
  • Distributors -> buy and stock products and sell it
  • management contracts ->
  • franchising
  • direct marketing  -> mailing, phoning

What are the foreign manufacturing without direct invest?

  • Contract manufacturing -> other producers so focus on marketing and sales. Nike in lage loonlanden
  • licensing

What are the foreign manufacturing with direct invest?

  • Assembly -> reducing tariff barriers
  • wholly owned subsidiaries -> parent company have the greatest amount of control (also the risks an costs)
  • company acquisitions and mergers -> acquiring an existing company in the market 

What are the corporate strategies?

  • Joint ventures -> two are beter than one
  • statistic alliances -> not 100% together -> sharing distribution channel
  • Minority stake holdings -> an equity stake in another company

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