LONDON--(BUSINESS WIRE)--Infiniti Research, a world-renowned market intelligence solutions provider, has announced the completion of their latest list blog on the perfect market entry strategies to enter international markets.
There are many reasons businesses look for international expansion, but before all of that, you will first need a strong market entry strategy. Business today are not restricted to any geographical boundaries. A company that’s had success in the domestic market may well find its way across the globe if they have a world class product. Entering foreign markets has many benefits such as achieving economy of scale, earning foreign currency, gaining global customers, and distributing risks. There are many ways in which a firm can enter a foreign market, but the challenge is to choose the right strategy. In this blog post, we’ll take you through the perfect market entry strategies to enter international markets.
According to the market entry strategy experts at Infiniti, “The market entry strategy of companies has been developing, giving companies the opportunity to go worldwide in a short period of time.”
View the complete list of the perfect market entry strategies to enter international markets from Infiniti
Infiniti Research is a global market intelligence company offering strategic insights to help look beyond market disruptions, study competitive activity, and develop intelligent business strategies. Listed below are the perfect market entry strategies to enter international markets.
Perfect market entry strategies to enter international markets:
- Direct exporting: Producing the product in the home country and just shipping the surplus to a new country is the easiest way to enter foreign markets. This market entry strategy can be perfect for brand new companies who do not have enough funds to take risks. It is also easier for the firms to hire agents or distributors who will take care of exporting and promoting the new product in the new market. But, one significant challenge is the fact that companies may not be able to react to customer communications as quickly as a local agent.
- Licensing: In simple terms, licensing is a contractual arrangement, where the firm provides proprietary assets to a foreign company in exchange for royalty fees. Sometimes it can be possible that a company is not able to export the product because of complex rules and principles or when the transportation cost is high-priced. Even though it significantly diminishes the risk for the company and cuts the amount of investment required, the company will have to share their proprietary secrets with an outsider. Licensing can be done for a trade name and not just for a product. This type of market entry strategy is appropriate for companies who don’t want to commit to international expansion.
- Franchising: One of the most prevalent market entry strategies that is gaining popularity across the world is franchising. Franchising works well for organizations that have a trustworthy business model like McDonald’s fast food chain or Starbucks instant coffee. Businesses who take up franchising should make sure that they earn a good brand name, build on it, and promote it. The franchising business model is outstanding as it doesn’t need huge investments from the franchise, builds a reputable brand name, and earns a franchise fee.
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About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies.
With 15+ years of experience and offices across three continents, Infiniti Research has been instrumental in providing a complete range of competitive intelligence, strategy, and research services for over 550 companies across the globe.