A market entry strategy is the planned method of delivering goods or
services to a target market and distributing them. Successful
launch strategies raise the possibilities of firm survival, better performances and
Hence market entries should be chosen very carefully as there are lots of risks involved in that. Specially entering to a
large developing nation on large scale is associated with high levels of risk.
So it’s important to outline foreign
expansion by studying three basics, such
as which market to enter, when to entre and
on what scale to entre. Good timing of entry is benefited
by first mover advantages which can create a good brand name, increase
volume of sales, and create a switching cost which can tie customers into their
brand name which will support immensely for a good business growth. The
consequences of entering on a significant scale, entering rapidly are
associated with the value of resulting strategic commitments which creates a
long term growth of a business. So after carefully analyzing those areas mode
of entry should be chosen.
four main mechanisms of the entry modes can be briefly discussed as follows,
most common international trade entries are exporting which deliver
goods or services to a target market and distributing, licensing
which is a particularly useful strategy if the
purchaser of the license has a relatively large market share in the marketr, joint venture
which enables the
risks and costs, as well as the rewards of the business to be shared., wholly own subsidiary which is completely owned by another company.
All of these methods require backup
supplies and therefore the firm’s initial choice of a particular entry mode are
difficult to amend or change without considerable loss of time and money (Root,
choosing the correct mode of entry and uphold
it is very important for business growth.