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Export Market Entry Analysis

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Recommended: Four approaches to internationalization

Export market strategy and entry options
1. Describe the export market strategy of a company

What do we need to know when describing our export market strategy? First of all: defining the firm’s export market strategy requires the assessment of the three main elements at stake there: the organisation, the industry and the foreign country.
Secondly, when describing the export market strategy of a company, you need to define the strategic focus of the company regarding internationalisation.
The nine strategic windows helpt to clarify. Two demensions are important: the preparedness of the company for internationalisation and the industry globality in general. Based on these two demensions, a company can easily locate where it is on the grid …show more content…

Exporting, 2. Contract agreement, 3. Joint venture, 4. Acquisition, 5. Greenfield investment.

The following provides a brief explanation of the individual export market entry options:
- Export sales: the exporter sells and ships directly from its home base to the export country.
- Agent: independent company or freelance salesman that sells on to customers on behalf of the manufacturer. Usually it will not see of stock the product. It profits from a commission paid by the manufacturer on a pre-agreed basis.
- Distributor (importer): independent company that stocks the manufacturer’s product.
The distributor will have substantial freedom to choose its own customers and price, and profits from the difference between the price it charges its customers and the price it pays to the manufacturer.
- Piggyback: a contraction of ‘Pick a Back’: choosing a back to ride on. This refers tot he rider’s use of the carrier’s international distribution organisation.
- Licensing: the licensor grants, against payment, the licensee rights on a product: a right to manufacture, market, and sell a certain product based on a patent against some agreed …show more content…

Compare the different market entry options and choice of market entry

Two methods can be very useful to compare the different export market entry options: the export market entry decision plot and export market entry options evaluation.
The decision plot uses the nine sub-elements that are used to describe a company’s export market strategy. The evaluation method uses five criteria from an overall management perspective to justify the choice for a specific export market entry option. These five criteria are: What is the strategic horizon of the company? Will it be easy to open the export country with the selected option? Do we have enough market control? How big will the risks be? How much will we have to invest?

Export and Internationalisation
Exporting means marketing. Selling and distributing goods or services from one country to another country of countries. It includes importing and reselling goods or services as well. From a classical point of view exporting refers to thee ethnocentric and poly centre organisation type as defined by Perlmutter: the organisation is internationalising by means of selling product or services towards other countries. Internationalisation as a process is different from globalisation. Globalisation is the impacts of doing trade, meaning selling on markets and sourcing, on a worldwide scale. Internationalisation can have its scope on a smaller scale, focusing on international trade between certain countries, however it could also include

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