International Marketing

International Marketing International Market Entry Strategies

An international market strategy tells about the challenges and requirements of small to medium size, company entering this market and are uniquely positioned to help the international entrepreneur to take the right first step.

It is believed that a solid market strategy requires market research to validate the opportunity and see what the characteristics of the potential clients look like. After working with they understanding where the company fits, it develops a market entry strategy that fits the company objectives and budget.Introduction1) External Factors -Market Size -Market Growth -Govt. Regulations - Physical Infrastructure

2) Internal Factors -Company Objective -Availability of Company ResourcesFactor Affecting the Selection of International Entry StrategyMethods of EntryThe major entry strategies adopted by firms in order to go international can be broadly divided into following:ExportingLicensingFranchisingContract ManufacturingJoint VenturesExporting

Forms of Exporting

1) Indirect Exporting -Export merchants -Export agents -Export management companies (EMC)

2) Direct Exporting -Firms set up their own exporting departments

LicensingAdvantages -Low financial risk to licensor. -Rapid entry into foreign markets

Disadvantages -Lack of control over manufacturing and marketing -Other entry mode choices may be affected

FranchisingAdvantages -Low investment and low risk -Franchisee does not have to bear the risk of product failure

Disadvantages -It is difficult to control international franchising - Problem of leakage of trade secrets

Contract ManufacturingAdvantages -Freedom from risk in foreign countries -Reduces the cost of manufacturing

Disadvantages -Quality aspects may be difficult to maintain -Sometime there may be loss of potential profits from manufacturingJoint Ventures

Advantages -J V s spread the risk among partners

Disadvantages -Delays in making decisions.