Market entry is the means through which a company expands its products to new market niches and new customers. The company has to analyse the needs and preferences of consumers in that niche. It also has to investigate its competitive nature and the market share it will command. Some of the market entry strategies include producing products in the target market, sales outsourcing and directly exporting products. Others include licencing and joint venture.
Market entry strategies have various strategies that include exporting being less risky. It also gives you a chance to analyse the market first before investing in it. The manufacturer and the exporter need little expertise (Doole & Lowe, 2008, p. 177). Licencing ensures that capital is not tied up in foreign operations and also options to buy into partner exists. It also is a good way to start engaging in international operations
Market entry strategies also face various disadvantages such as the decision on whether to obtain products, make or buy.
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The company will face various challenges such as the right marketing strategy and acceptance of the product. Thus, Korres Company is using the advantages of Avon innovation without having to invest in new research and development. It made Korres sell its products to new customer segments. Another strategic alliance in America includes Apple Company and Sony.
Doole, I., & Lowe, R. (2008). International marketing strategy: Analysis, development and implementation. London: Cengage Learning.
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