What is Market Entry Strategy ?
A market entry strategy is the method in which an organization enters a new market. A first point of consideration is whether or not the organization is expanding domestically or internationally. Expansion within the same market will have different requirements than expansion into the global market. Among other factors that may impact how the company integrates into the new market,
What to Consider for Market Entry ?
- Type of industry
- Agility of the products
- Culture of the new market
- Costs associated with entering a new market
- Local and international laws of importation and exportation
Types of Market Entry Strategies
- Direct Exporting : is selling directly into the market. Many companies, once they have established a sales program turn to agents and/or distributors to represent them. They become the face of your company and thus it is important that your choice of agents and distributors is handled in much the same way you would hire a key staff person.
- Licensing : is a relatively sophisticated arrangement where a firm transfers the rights to the use of a product or service to another firm. It is a particularly useful strategy if the purchaser of the license has a relatively large market share in the market.
- Franchising : works well for firms that have a repeatable business model (eg.food outlets) that can be transferred into other markets.
- Joint ventures : are a particular form of partnership that involves the creation of a third independently managed company.
- Buying a Company : In some markets buying an existing local company may be the most appropriate entry strategy.
- Piggybacking : This reduces your risk and costs because you are essentially selling domestically and the larger firm is marketing your product or service for you internationally.
- Turnkey Projects : For companies that provide services such as environmental consulting, architecture, construction and engineering. It is where the facility is built from the ground up and turned over to the client ready to go – turn the key and the plant is operational.
- h.Greenfield Investment : is where you buy the land, build the facility and operate the business on an ongoing basis in a foreign market.
Our Market Entry Services Include :
- Market Intelligence : in-depth market research and analysis to help guide market entry strategy
- Site Selection– assist in selecting the most appropriate location for your international expansion project.
- Market Entry Strategy – develop and execute a market entry strategy that works best for your business
- Company Formation– establishing a legal entity, setting up a local office, and assistance hiring local staff.
- Business Development – searching for distribution channels and partners, introduction to service providers freight forwarders, law firms, banks, etc.
- Marketing & Promotion– providing Full Marketing Services