Biggest goal of any business is to go global. Going global comes with a lot of benefits. However most business owners are afraid to spread into international markets, because there is no one way, one strategy that can be applied for all companies and would work the same for all. That means there’s a lot of strategy creation involved.
Market entry is the term you’re going to get familiar with if you’re planning to go abroad. It’s the process of adapting, transforming your product or service to a different, foreign market. There are a lot of plans and strategies to do so, but you will always need to adapt a known strategy to your own situation, because every company is different.
There are such market entry strategies as:
- Direct exporting is direct selling into the different market you’ve chosen. It is crucial to choose the right sales agents, because they represent your company abroad.
- Licensing is the term of giving the rights to your product to another company. It is best to chose this strategy, if the partner you chose has a large part in the market you’re about to enter and a wide audience it’s already reaching.
- Franchising is quick market expansion. If your company’s business model is quite versatile – this is the strategy for you. This strategy can only work if your brand is unique and known.
- Partnering is often fundamental in the process of market entry. In Asia partnering is mandatory. If you’re entering the market of a country that has completely different social culture, traditions, business, this is the best strategy to enter a market.
- Piggybacking is a considerably cheap strategy. You first need to find companies, that are already in foreign markets. Then you have to persuade them to add your product or service to their assortment. If they accept your offer, you will enter foreign markets.
- Joint Ventures strategy is when two firms agree to work together in a distinct market and create a third company to undertake this.
- Buying a Company is useful when you have a big budget. You enter the foreign market by buying a local company. It is very expensive, but local people, government will perceive you as a local company from the start.
These are only some strategies of how to enter a foreign market. For more information or help visit https://pointoneintl.com/ .
