BA437-637: International and Global Business: Websites

There are a variety of ways in which a company can enter a foreign market. No one market entry strategy works for all international markets. Direct exporting may be the most appropriate strategy in one market while in another you may need to set up a joint venture and in another you may well license your manufacturing. There will be a number of factors that will influence your choice of strategy, including, but not limited to, tariff rates, the degree of adaptation of your product required, marketing and transportation costs. While these factors may well increase your costs it is expected the increase in sales will offset these costs. The following strategies are the main entry options open to you.

Successful market entry strategies require a structural approach. In this article, we are going to highlight the critical steps to asses the potential of a specific market and how to base your market expansion decisions on solid insights.

Infiniti Research, a world-renowned market intelligence solutions provider, has announced the completion of their latest list blog on the perfect market entry strategies to enter international markets.

Company X wants to know if they can profitably introduce their widget to the Chinese market.
Company Y wants to leverage its knowledge of the North American fast-food market to introduce a new restaurant format. How should they do it and how long will it take to reach profitability?
Have you read case interview examples that sound like these?
Of course you have, because all successful businesses want to become more successful by expanding into new markets, so there are many case interview questions on this topic.
Because of this, it’s important that you have a thorough understanding of the market entry case framework. We’ve got you covered!

A wholly owned subsidiary is a company whose entire stock is held by another company, called the parent company. The subsidiary usually operates independently of its parent company – with its own senior management structure, products and clients – rather than as an integrated division or unit of the parent. Nonetheless, the parent company can still maintain significant control over the strategic direction of the subsidiary. The advantages and disadvantages of this business model fall into financial, operational and strategic categories.

RARELY A DAY PASSES without a new joint venture being announced in the world’s leading financial publications. In the last year, Apple, Bank of China, Google, ExxonMobil, IBM, Microsoft, Nestlé, Novartis, Samsung, Sinopec, Tesla, Toyota, and many other leading companies entered into at least one new joint venture – and in some cases several. The continued volume of deal activity is not surprising, as joint ventures allow companies to access capabilities, enter new or restricted markets, share risk, pool capital, and secure scale- and scope-related synergies.

Many people use the terms strategic alliance and joint venture interchangeably. They do the same with sales and marketing, promotion and advertising and even colleagues and partners, too. While these people mean no harm, and probably don't intend to mislead, commingling the terms can create misconceptions and confusion.

If your business is considering entering a new international market, then your choice of market entry strategy is of crucial strategic importance as this will affect your entire marketing and business planning process.