Market Entry
- Submitted by: smallqq2005
- Views: 961
- Category: Politics: Economics
- Date Submitted: 02/21/2012 07:27 PM
- Pages: 5
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1) Market entry
The choice of which entry modes to use in entering international markets matches a company’s international strategy. Some companies will want entry modes that give them tight control over international activities because they are pursuing a global strategy, for example. Meanwhile, another company might not require an entry mode with central control because it is pursuing a multinational strategy. The entry mode must also be chosen to align well with an organization’s structure.
a) Explain why and how companies use exporting, importing and countertrade:
Companies being exporting to expand sales, diversify sales, or gain experience. Companies often use exporting as a low-cost, low-risk way of getting started in international business. A successful export strategy involves 4 steps : 1) identify a potential market. 2) match needs to abilities 3) initiate meeting and 4) commit resources.
There are 2 basic forms of export involvement. Direct exporting occurs when a company sells its products directly to buyers in a target market. Typically, the company relies on either local sales representatives (who represent only their own company’s products, not those of other companies) or distributors (who take ownership of merchandise when it enters their countries). Indirect merchandise when it enters their counties). Indirect exporting occurs when a company sells its products to intermediaries who then resell to buyers in a target market. There are 3 general types of intermediaries: agents (indirect exporters in a target market); export management companies (firms that export products on behalf of indirect exporters); and export trading companies (firm that provide services to indirect exporters in addition to the activities directly related to clients’ exporting activities).
Selling goods or services that are paid for, in whole or parts, with other goods or services is called countertrade. There are several different types of countertrade: a)...
The choice of which entry modes to use in entering international markets matches a company’s international strategy. Some companies will want entry modes that give them tight control over international activities because they are pursuing a global strategy, for example. Meanwhile, another company might not require an entry mode with central control because it is pursuing a multinational strategy. The entry mode must also be chosen to align well with an organization’s structure.
a) Explain why and how companies use exporting, importing and countertrade:
Companies being exporting to expand sales, diversify sales, or gain experience. Companies often use exporting as a low-cost, low-risk way of getting started in international business. A successful export strategy involves 4 steps : 1) identify a potential market. 2) match needs to abilities 3) initiate meeting and 4) commit resources.
There are 2 basic forms of export involvement. Direct exporting occurs when a company sells its products directly to buyers in a target market. Typically, the company relies on either local sales representatives (who represent only their own company’s products, not those of other companies) or distributors (who take ownership of merchandise when it enters their countries). Indirect merchandise when it enters their counties). Indirect exporting occurs when a company sells its products to intermediaries who then resell to buyers in a target market. There are 3 general types of intermediaries: agents (indirect exporters in a target market); export management companies (firms that export products on behalf of indirect exporters); and export trading companies (firm that provide services to indirect exporters in addition to the activities directly related to clients’ exporting activities).
Selling goods or services that are paid for, in whole or parts, with other goods or services is called countertrade. There are several different types of countertrade: a)...