Market Entry

Market entry is the activities associated with bringing a product or service to a targeted market. During the planning stage, a company will consider the barriers to entry, the costs of marketing, sales and delivery, and the expected outcome of entering the market.

The ways how to enter a foreign market can be different and you should bear in mind that no one strategy does not suits all international markets equally.

You can enter into foreign markets via the following methods:

  • Exporting (direct / indirect)
  • Licensing or Franchising
  • Contracting or Partnering
  • Joint Venture
  • Direct Investment
  • and some others

When choosing the right method, it is necessary to take into account the business, its products and marketing indicators. Licensing might be the most proper strategy in one market while in another you may need to have a local partner. Moreover, different modes of entry may be more appropriate under different circumstances (transportation and marketing costs, tariff rates etc.), and the mode of entry is an important factor in the success of the whole project.