Global Market Entry
What market entry strategies would be successful in a global market. explain in details
Introduction
There are many ways that a company can enter into the global market. These ways often vary from the kind of business or the country one that a business is willing to invest in. Regardless of such strategies, the company should also take into consideration the factors that influence the choices that it makes. These factors may be tariff rates, cost of transportation, and many others.
Strategies include
Direct exporting
This is where a company chooses to send its goods directly to a country it has identified to venture into. This strategy is more attractive for many businesses since it attracts low risks. Direct exportation is also valuable because the products sent to a foreign country may find a growth opportunity in a foreign country. Companies also export products because there is no stiff competition overseas, making the product to have a competitive advantage.
Partnering
This strategy is also beneficial for a company that is seeking to establish more substantial grounds in the global market. The company may choose to take partnering arranged with another company of a particular country like co-marketing arrangements. It is most useful when the culture of doing business is very different from that of the origin country.
Joint venture
A company may also use a joint venture strategy. This is where a domestic company will partner with a foreign firm in both money, share ownership, and control of the venture. The international firm will be responsible for the provision of market expertise networks and business connections to grow the business.
Conclusion
Other strategies that a company can use to enter into the global market include licensing and franchising. All these strategies help a company to establish stable ground and carry out operations in the worldwide market.