Question

In Chapter 13, your e-book lists four distinct Global Market Entry Strategies. How you enter the market initially as an international or global marketer is an important early consideration and choosing the right method for that specific market and one that also fits your circumstances is critical. Choose any one of the four entry methods, describe it, and explain why and when you might choose to use that strategy to enter a new market. Provide examples that illustrate your thoughts.

Answer 1

Answer: Exporting is one of the four entry modes that are used by the organizations for entering a new market. In this entry mode a company manufactures a good or service in one country which is mostly the country to which the company belongs and then market it in wholesale to another customer into another country. This is considered to be one of the safest market entry modes as it enables an exporter to sell a product in another country without getting involved in the marketing of the product at the local level. This is done when a company wants to take advantage of the potential of another country without taking risks of operating in that country. For example a company from U.S may export food items like cheese into a country like Iraq for taping the potential of the market without taking a risk of setting up physical operations in Iraq which is a war ravaged country as there is a constant threat of violence.