If you were taking your company global, what market entry strategies would be successful in global market? Explain
While entering into international markets, companies cautiously approach the markets. Firms have to critically analyze their potential together with the market opportunities to find out the best market entry strategies. If I was taking my company to the global arena, the following are successful market entry strategies.
Piggybacking is one of the unique market entry strategies. The strategy will allow the firm to sell its products to a large firm in the foreign market. This will allow the firm to easily penetrate the market because the domestic firm will conduct all the marketing activities. It also lowers the risk and other marketing costs which are associated with entering into a new market.
Licensing is another market entry strategy that will be successful in the international market. Licensing allows the firm the opportunity to use the proprietary assets of the licensor in the foreign market over a specified period. The proprietary assets include things such as trademark, copyrights, and technical assistance, among others. Licensing is the best strategy that allows the firms to enter into foreign markets that are restricted to international companies.
The other strategy is the formation of strategic alliances. The firm can enter into a coalition with other firms that assist it in achieving significant strategic objectives. Firms combine their resources and efforts to share k knowledge, expertise, and access ease entry to the global markets. The use of domestic firms can provide the firm with market knowledge, customer tastes and preferences, suppliers and the distribution network
In conclusion, when firms enter into global markets, they encounter a variety of options. However, these options have costs, different levels of degree of control, and risk. Therefore, the firms have to consider such factors and select the best, which will enable the firm to make maximum profits.