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MARKET ENTRY STRATEGY

A market entry strategy is a  approach that a company uses to establish itself in a new market or expand  presence in an existing marketThe choice of entry deoends on  the below mentioned strategies 

1. EXPORTING :There are two types of Exporting
– Direct Exporting:- The company sells its products or services directly to customers or distributors in the target market.
– Indirect Exporting:The company uses intermediaries, such as export agents or trading companies, to sell its products in the target market.

2. LICENSING
– The company licenses its technology, brand, or intellectual property to a local partner in the target market, allowing them to produce or sell the company’s products or services.

3. FRANCHISING
– Franchisees pay fees and royalties in exchange for support and use of the brand.

4. JOINT VENTURES AND STRATEGIES
–  company forms a partnership with a local company to enter the market jointly. This can involve sharing resources, risks, and profits.

5. Wholly Owned Subsidiaries
– The company establishes its own subsidiary or branch in the target market, giving it complete control over operations.

6. Mergers and Acquisitions:
– The company acquires an existing local business or merges with a local company to gain immediate market access and leverage existing infrastructure.

7. Greenfield Investment:
– The company builds its operations from the ground up in the target market, often involving substantial investment in infrastructure and facilities.

8. Strategic Partnerships:
– The company forms strategic partnerships with local firms to gain access to distribution networks, customers, or expertise without full ownership.

9. E-commerce and Online Marketplaces:
– The company leverages e-commerce platforms or online marketplaces to reach customers in the target market without establishing a physical presence.

10. Turnkey Projects:
– Typically used in construction and engineering industries, the company designs and builds a project for the client in the target market, then hands over the “keys” once it’s operational.

11. Agent or Distributor Agreements:
– The company appoints agents or distributors in the target market to sell its products or services on its behalf.

12. Product Adaptation or Customization:
– The company modifies its products or services to suit the preferences and needs of the target market.

13. Market Research and Feasibility Studies:
– Before entering a new market, the company conducts thorough market research and feasibility studies to assess demand, competition, and potential risks.

Choosing the right market entry strategy is crucial for success. It requires a careful analysis of the market, competition, legal and regulatory requirements, and the company’s own capabilities and objectives. Additionally, market conditions may change over time, necessitating adjustments to the chosen strategy. Companies often seek the assistance of market entry consultants or conduct pilot projects to test the waters before fully committing to a new market.

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