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Market Entry Strategy
The definition of market entry is – a group of activities necessary to transform a product or services to a different, targeted market. A company can apply such process through many different layers. There is no canonical strategy which could work for all sorts of enterprises the same. In order to select proper market entry plan you have to consider a number of different internal and external elements. Such factors often contribute to the raise of costs for going abroad and that is the main reason why many entrepreneurs are afraid of spreading their ideas (products and services) all around the world.
Do you recognize your situation within these sentences?
Our personal practice and a variety of researches over the internet show that the increase in sales (elevated by joining a new market) most often offset those additional costs. Thus, you really do not have any excuses left, do you?
Every business is unique and by saying that – we mean it.
Companies have their own development stories, diverse cultures, different values and aims. Enterprises often mirror ourselves, that is why they are comparable to individuals. There is no one good way in going international, therefore you need to get familiarized with existing foreign market entry practices. You have to also be able to identify the best strategy for your own case. It is not an easy task and in most occasions you will definitely need a hand from a professional, especially when the list of original market entry strategies is so long...
If you need any help in transferring your business into the international arena, please contact us and we will consult you immediately. Pointoneintl will provide you with useful, research-based information. We will also find the best market entry strategy fit for your company and help you to arrange impeccable plan of actions.
The List of Market Entry Plans and Modes
Direct Exporting: direct exporting can be done by cooperating with sales agents and distributors. The agents analyze your business and then, according to: 1. gathered data; 2. your interests; and 3. company's values, represent your firm abroad. It is extremely important to select appropriate sales agents – they are the face of your company in different countries. Be aware of that and pay exceptional attention to the hiring process.
Licensing: This term defines a process when a company shares the rights of a product or a service with another company. Licensing is recommended in such case, when a purchaser is a strong participant in the market that you would like to enter. If you manage to find an appropriate partner, you will ensure the success of your products within particular sphere, because the prospective provider already has a high reach of audiences. However, make sure to find a company that is more or less similar to your business or have abilities to market your products or services well.
Franchising: If you are looking for quick market expansion – franchising method is perfect for you. Franchising should be the number one choice for those companies, who have a versatile business model. Only such type of enterprises can be transferred to another country easily. Keep in mind that franchize is possible only when the business model is extraordinary or the brand has high level of recognition. If your band is unknown and you are selling coffee, probably no one would agree on a franchize with you. These people are more likely to establish their own brand instead of trying hard to push through an unfamiliar company.
Partnering: This strategy in a number of cases is a fundamental part of entering a foreign market. In some Asian countries, e. g. China, partnering is even mandatory. If you are spreading your products and services into a land that has completely different business, social culture, the method of partnering will be extremely handy to you. By collaborating with local companies you will be provided with requisite knowledge of an existing market and essential contacts.
Joint Ventures: Joint ventures strategy is executed when two different enterprises decide to work on the same project together. For such matter, those firms establish new (third) company to take care of a particular product or services in certain location. Companies who use this module experience shared risks and profits. It is often said that two heads are better than one.
Buying a company: If you have a big budget, you should consider this method. Buying a local company in a foreign country is one of the easiest ways to enter the market. However, it is also one of the most expensive ones. The pros of such strategy are: 1. you will be perceived as a local company by people; 2. government will treat you as a local; 3. you will get loyal customer base immediately.
Piggybacking: If you want to enter international arena cheaply, you should definitely try the strategy of piggybacking. This method is common within such companies, who sell unique products or provide exceptional services. If you want to apply piggybacking strategy, you have to find those firms, who are already involved in foreign markets. By finding such company, you need to convince them to add your product or service to their offered assortment. If they will accept your offer, you will enter foreign markets. Of course this entry is indirect but it is cheap and most often easily accessible.
As you can see, there are a lot of options for starting market entry processes (localization). In order to find the best match for your business it is extremely important to evaluate some of the crucial criterias. We can stress some of them right now: e. g. timing – how fast do you want to see results, laws – (if you are entering a market in a different country) what responsibilities, requirements for businesses are inscribed in that country’s legislation and etc.. We could be naming such factors all day long but it is just too much for one person to handle. That is why you should definitely contact the professional team of Pointoneintl!
Market Entry Consulting
Are you encountering any obstacles in transferring your firm into targeted market? Pointoneintl has a plan for international businesses (and not only them) that will help you overcome all the barriers and considerations. We offer you effective, time-proven methods that will lift your income for relatively low price. Pointoneintl specialists are the best experts on the field. Our analysis methods, provided examples, raised critical points each year help a variety of enterprises in Germany, USA, France and so on… Market entry consulting services – your way to the future. Make a decision and start expanding right now!