Question

ay one f l deuisets fr intomaona morkekr stafe your answer

the previous person who answered this has no idea on what he's on about. Please elaborate more on the theory of mode of market entry rather than general knowledge

Answer 1

Choosing the proper market entry and development strategy in a foreign market is a very difficult decision to make. There are various factors to consider while making such a decision which would affect the future success and revenue of the company.

1. Many times, the foreign markets have a monopoly in the industry the company is trying to enter. This affects the overall scheme of business development and makes it difficult to penetrate the market easily especially if the monopoly is state-owned. Therefore, it is very necessary to formulate whether entry into such a market is viable and will bear success. If yes, then it requires extensive research for the development of strategies for market penetration.

2. Many times, foreign governments levy heavy taxes and regulations to prevent foreign companies from entering the market or to give an advantage to the local companies. The company has to make the decision of market entry after considering the rules and regulations the new market levies on foreign companies and then make an informed decision.

3. Many countries have an extensive corrupt system where companies following an ethical code of conduct often fail to make a success. It is not necessary for the company to become corrupt but for successful market entry and penetration, it needs to develop a proper strategy for its entrance and product development.