Marketing Entry Strategy
1 Introduction
In this assignment, there have several ten questions for us for selection, I have choose the question five for my assignment this time, this question is regarding to two areas, one is the market entry strategy and explain why no single strategy can be used in all circumstances; another one is explaining why franchising is popular method of entering markets abroad and describe its characteristic.
2 Market Entry Strategy
Why firms go abroad
First of all, we need to know why firms go abroad and looking for entering foreign countries’ market.
In General, the reasons why Enterprise seeks to invest in the foreign countries and have International expansion, which can be divided into several aspects. Firstly, domestic market is becoming saturated, therefore, enterprise had to seek to invest in the other market so as to solve the issue of overcapacity. Moreover, could obtain more market share in the foreign countries through global investment while niche market would also be available to the enterprise in the Market. Furthermore, economies of scale would be formed through the distribution both in domestic and abroad and as a result enterprise could reduce operating cost and earn more profits. Fourthly, investing in the foreign countries is a wise option to avoid anti-dumping measures.
2.1 Type of entry strategies
According to above reason we mentioned, the enterprises are required to seek alternative and appropriate market entry strategies to help enterprise to entry different market. Normally, we can find the most common strategies as the following
2.1.1 Exporting
Exporting is the marketing and direct sale of domestically –produced goods in another country. Exporting is traditional and well-established method of reaching foreign markets. Since exporting does not require that the goods be produced in the target country, no investment in foreign production facilities is required. Most of the cost associated with exporting take the form
In this assignment, there have several ten questions for us for selection, I have choose the question five for my assignment this time, this question is regarding to two areas, one is the market entry strategy and explain why no single strategy can be used in all circumstances; another one is explaining why franchising is popular method of entering markets abroad and describe its characteristic.
2 Market Entry Strategy
Why firms go abroad
First of all, we need to know why firms go abroad and looking for entering foreign countries’ market.
In General, the reasons why Enterprise seeks to invest in the foreign countries and have International expansion, which can be divided into several aspects. Firstly, domestic market is becoming saturated, therefore, enterprise had to seek to invest in the other market so as to solve the issue of overcapacity. Moreover, could obtain more market share in the foreign countries through global investment while niche market would also be available to the enterprise in the Market. Furthermore, economies of scale would be formed through the distribution both in domestic and abroad and as a result enterprise could reduce operating cost and earn more profits. Fourthly, investing in the foreign countries is a wise option to avoid anti-dumping measures.
2.1 Type of entry strategies
According to above reason we mentioned, the enterprises are required to seek alternative and appropriate market entry strategies to help enterprise to entry different market. Normally, we can find the most common strategies as the following
2.1.1 Exporting
Exporting is the marketing and direct sale of domestically –produced goods in another country. Exporting is traditional and well-established method of reaching foreign markets. Since exporting does not require that the goods be produced in the target country, no investment in foreign production facilities is required. Most of the cost associated with exporting take the form