International markets, Revenues, Exporting
The process of entering and developing business in a new international market may be difficult. The situation may require a company to strategize well in order to succeed and treat the market as an extension of its business and a source to increase its sales and revenues. The option adopted should minimize the risk of investment and offer the company a competitive edge against other existing businesses in the same market. While entering new international markets, businesses can adopt different options as discussed below.
Exporting involves a company selling its products and services to the chosen market. Manufacturing is centrally placed in the mother country's premises. A company my use either direct or indirect exporting. In indirect exporting, a business sells its products through an intermediary. Intermediaries are distributors based in a foreign market who have a direct access to the end users of a service or product (Laurel, 1998). The intermediaries have a good knowledge of the market, so they require little support to enter the market. However, the mother company has no direct contact with the end users of their products, so it does not learn the parameters of the new market. The disadvantage can slow future expansion plans. When a company uses direct exporting, it sells its products directly to the customers in a foreign market. The mother company has control over the pricing of its products and maintenance of good customer relations (Laurel, 1998). By so doing, the company can beat its competitors and take a large share of the market.
[...] How they approached the market and the success or failure they suffered, as a result, may act as good stepping stone towards determining the approach that fosters success (Ramez, 2010). An international brand name is built through thinking globally and employing a comprehensive strategy when determining the option to enter into the markets. The option to adopt should be reached through considering the existing market conditions at the time of entering the market. Internal, as well as external powers, should be considered alongside other dynamics that affect entry into the market. [...]
[...] The speed that the market is growing determines the necessity for entry and the option to use www.oboolo.com OPTIONS OF ENTERING NEW INTERNATIONAL MARKETS 7 Bibliography Forbeswoman. (2011). A 5 step primer for entering an international market. Retrieved July from: http://www.forbes.com/sites/yec/2011/09/22/a-5-step-primer-for-entering-aninternational-market/ Maitena and Danco Espana. (2003). Definitions of foreign direct investment a methodological note. Retrieved July from: http://www.bis.org/publ/cgfs22bde3.pdf. Ramez, N. (2010). Going international: Ideas for entering markets around the globe. Retrieved July from: http://www.salesandmarketing.com/article/going-international-ideasentering-markets-around-globe Thilo Trost. (2011). [...]
[...] Foreign direct investment can either favor the host country or the investing company depending on the policies that govern entry into the international market. Some countries may have strict measures that inhibit investors from 3 www.oboolo.com OPTIONS OF ENTERING NEW INTERNATIONAL MARKETS 4 accessing their markets. Foreign ownership can also strip off the value of the company in the investing country. However, in case the policies of the international market allow foreign investors to come into their market, they can increase the capital inflow to their country. [...]
[...] The domestic market should be well determined and compared with the international market to be ventured. The marketing strategies used for the domestic market can be tailored to fit or contribute in penetrating the foreign market (Ramez, 2010). The etiquette and customer behavior in the foreign market should be well analyzed before venturing into the market. The history of the customers and the market should be determined in terms of timing and communication. The communication that the business adopts should be acceptable in the foreign market. [...]
[...] Joint ventures: The benefits and perils-why some are successful and others fail. Nordestedt: Druck und Bindung. Delaney, Laurel J. (1998). Start and Run a Profitable Exporting Business. Bellingham, WA: Self- Counsel Press. [...]
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