International Market Entry and Development

International Market Entry and Development

Introduction

Businesses may choose to enter into the foreign markets for various reasons. This may include factors such as expansion, rising consumer demands, increasing revenues or diversification. By entering into the global markets, firms try to deploy their strengthened resources to take advantage of the prevailing economic and political environments of the foreign markets. The most important concern here is making money. A company going global has to carefully design its strategy by considering the overall strategic factors of the organization, keeping in mind home operations and the operations abroad. The following paper analyses various strategies and management systems that a company must look into when it aims to enter the international markets.

Discussion

International Marketing

International Marketing is the process in which a company directs its products to foreign markets and tries to expand its operations rather than operating only in the home market. The concept of marketing is same for all the regions; however the marketing plan is different in a dramatic way. The marketing plan and the distribution strategies differ vastly in terms of costs, price, advertisements and the distribution channels when the company goes global (Graham, n.d). However, for being successful in international operations, it is recommended that the multinational must have the abilities of adaptation, management and coordination while operating in a totally different environment.

Stages of International Strategy Development

The developmental part of the strategy takes place in two stages. This involves strategy formulation and implementation of the strategy. When a company defines its strategy, it has to identify its objectives and goals and put them together to formulate a strategy (Graham, n.d). In this stage, managers are in the continual process of proposal, revision and rectification of the plans to enter the global markets carefully. After the strategy is being devised, the managers then identify the ways to implement the strategy. This stage identifies when the organization is ready to enter into the global market. In the first stage, a company establishes goals and develops a controlled framework for global operations. This may involve collecting information about the international environment, costs and competition. Goals are then established accordingly (Hillstrom & Hillstrom, 2002).

Process of market research for assessing the potential in the foreign markets

Choosing Markets

One of the basic things to analyze is to identify whether the consumers in the foreign markets shall be able to afford the product or the service offered. For products that are a part of a mature industry category, the choice has to be very limited because of the already existing price competition in the foreign markets (Hillstrom & Hillstrom, 2002). This is one of the basic factors imposing a barrier to foreign entry.

A common mistake that is made international executives is the foreign market syndrome which may be in the form of a product not known or sold in the global market or may revolve around the fact that the expatriate may identify that the global market is more lucrative and leaves the home ...