7 TYPES OF MARKET ENTRY STRATEGIES

By

 Choosing the Best for Emerging Markets.




How you enter a market often dictates whether you'll be successful there. A key step when expanding to a new market is choosing the best market entry strategy for your business. There are a few ways to enter an emerging market. You must choose one that will work best for your business.

Whether you're looking to enter a global or domestic market, here are several types of market entry strategies to consider.

#1. Exporting /trading 

One way to enter a new market is through exporting goods. This strategy allows you to enter several markets simultaneously. You can assign a local distributor to conduct transactions with your buyers. The main advantage of working with local distributors is access to their existing client base. They also have experience in the local market and will be able to share insights with you. The downside to this, however, is that you will be dependent on your local distributor. You will have little control over your sales. This strategy also works for companies that sell products, not services.

#2. Company purchase

Another strategy for entering a new market is to buy an established company, which may be required in order to enter some foreign markets. Although a costly endeavor, the benefit to this strategy is that you're buying a company with an established name, presence and clientele.

#3. Direct investment

For many companies, setting up a fully-fledged operation in the new market is a big commitment but also brings huge advantages. This kind of 'greenfield' investment- 'greenfield' meaning the establishment of new facilities-means complete control over the operations in the new market. Many countries welcome foreign investment of this kind. Some companies will choose only to enter new markets where this kind of investment is possible-for a variety of reasons. If the product is particularly sensitive to different kinds of handling, for example, or needs to be manufactured to particular tolerances, ownership provides a reassuring level of control. If that's the case, the legal and regulatory burden of different potential markets should be a factor in the due diligence process right at the outset. Having local legal and financial advice, in additional to in-market research expertise, is essential.

#4. Franchising

Franchising is similar to licensing in that it lets a separate entity use your company's name for a fee. However, as the franchisor, you can set rules for how the franchisee must operate the business. You can also retain control over branding. You have slightly more control over the business as a franchisor so it is less risky than licensing. But you can also run background checks on your potential franchisee. 

#5. Licensing

Licensing is another option for market entry, costing less than the purchase of a company. When a firm licenses a product or service, they transfer use rights to the licensee for a fee and a royalty fee is typically provided from the licensee to the licensor. The product or service can then be used by the licensee for marketing or production purposes. This can be a solid strategy if the company that buys the license has a strong customer base in the new market. Whether you're seeking to enter into a licensing agreement as a licensor or licensee, this market entry strategy is one to consider.

#6. Joint venture

Simply put, a joint venture is a partnership between your company and one or more parties. Having a local partner brings many benefits like existing infrastructure. Your local partner will also be able to share insights on the market with you. This is one way to make foreign direct investment in a new market. You will also have more control over the business than the previously mentioned options.

#7. Co-marketing

With co-marketing, multiple companies join forces to market their products and services together. While a cost-effective market entry strategy, limited control is a potential downside.

You can learn more about our market entry expertise or get in touch to discuss a potential project.


Are you looking for online jobs in Kenya? Check it out here

How to make money online? Find out more here


Written by: Antony Moturi


   About the Author: 


Antony is a professional DJ, Pianist, Social Media Manager, Content Creator and a Blogger. Besides that he does professional Sound Engineering, Public Speaking and is a Youth Leader.

Comments

Post a Comment

Popular posts from this blog

Make Money Online Today (Step By Step Guide)

By
Image
Gone are the days when you had to open a storefront to start earning. The internet has changed the game. Today, you can do business in a remote location: no shop, no stocks. Interesting? Well, you don’t have to own the products. All you need is to have that client and come up with how the commodities reach them. Additionally, the internet has opened up a lot of income-earning opportunities. From your couch, it is possible to see your money grow. Such is the case when you join First and Fast Communication System Company (FNFCOM). How does it work? Well, fnfcom is an online airtime distribution system enabling you to have sufficient top-up. Besides, the company seeks to help you out of those mobile debts, the likes of Fuliza, Mshwari, etc. It is time to get out of the cycle of debts. So, how do you go about it? Sign Up at fnfcom The first step is to create an account at fnfcom.   Go to your browser and load the website www.fnfcom.com . It takes you directly to the   home   page. A
Read more

4 SECRET TECHNIQUES TO MAKE YOUR BUSINESS MORE AUTHENTIC

By
Image
 The Untold Secret to Mastering Authenticity. There's something to be said about authenticity in business . It allows us to show up as ourselves, not the cardboard cutouts we think others want to do business with. The result? A much more enriching and personable work experience and an irresistible magnetism that attracts new business. Authentic people and things are the real deal. And when it comes to business, this matters more than you may think. Take a look at the following techniques to build and maintain authenticity in business. #1. Use storytelling Authentic people and things have stories behind them. These stories back up claims and highlights how they got to where they are today. An authentic meal? Passed down from generation to generation. An authentic artifact? Found through an excavation in some part of the world. An authentic business? Started in the basement of a factory, built up through years of struggle, determination and grit. You need to be a storyteller. And no
Read more

6 MOST SUCCESSFUL INCOME STREAMS EVERY WRITER SHOULD CONSIDER

By
Image
 How To Make Extra Cash. Writing is both a blessing and curse. The work is cerebral and tough. The pay isn't always that great. Most writers understand or assume they won't get rich typing. But we can make a great living. Most writers spend all their time earning money from a single source. Whether it's writing articles or books, blog posts or ads- the average writer has a single income stream from his/her work. Not only is this dangerous to your finances , but single-income sources can lead to burn-out and total dependence upon the host source. We can do better. One of the best things about being a writer is that, even when you're reading past your bedtime, your writing can still be hard at work ranking in some extra income. The trick is knowing how to play the publishing game.  Here are some ways to earn or make extra cash as a writer. #1. Books A book can be an evergreen source of income. Books also give authors credibility and help you grow a tribe of loyal readers
Read more

6 WAYS TO MAKE ONLINE MEETINS BETTER

By
Image
 Zoom Tips For Startups. Now that meeting online is a necessity, do you know the various ways to control and improve Zoom meetings and other online gatherings? Zoom has packed plenty of complexity into all the options that can be enabled or disabled to meet different business needs . You will need to decide how many of those choices should be left to the individual versus mandated Zoom's administrative controls. You've probably attended more than a few Zoom sales meetings over these past few Covid years. There are some people, however, who don't appreciate zoom and who don't understand the dos and don'ts of Zoom meetings. Check out these expert tips to avoid embarrassment and boost productivity. #1. Join your Zoom meetings early Do you log on at 9:59 am if a Zoom meeting starts at 10? That's too late. Think about, you would not arrive at a client meeting late, so why go to a Zoom meeting late? Instead of signing in a minute before the meeting is scheduled to st
Read more