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Market Entry Strategies (Direct Exporting (Advantages (Easy to try out…
Market Entry Strategies
Direct Exporting
Advantages
Easy to try out ("Market Entry," n.d.)
Cost effective ("Market Entry," n.d.)
Less investment ("Market Entry," n.d.)
Disadvantages
company will be viewed as an outside (Erwin, 2012).
logistics of moving goods (Erwin, 2012).
possible trade barriers (Erwin, 2012).
Partnering
Advantages
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Benificial when the culture, and society is different
provide guidance with local government regulations (Erwin, 2012).
Disadvantages
Partner might be working for more than one company (Erwin, 2012).
Franchising/ Licensing
Advantages
Minimal Business cost ("Market Entry," n.d.)
Access to closed markets ("Market Entry," n.d.)
Quick to implement ("Market Entry," n.d.)
Disadvantages
Revenues are significantly lower ("Market Entry," n.d.)
Lack of control over production and marketing ("Market Entry," n.d.)
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Buying a company
Disadvantages
More time to get started ("Market Entry," n.d.)
Little knowledge of the local market ("Market Entry," n.d.)
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Joint Ventures
Advantages
Capital investment is shared ("Market Entry," n.d.)
Reduced risk ("Market Entry," n.d.)
Control over production and marketing ("Market Entry," n.d.)
Disadvantages
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Risk giving control to partner (Erwin, 2012).
Turnkey Projects
Advantages
Built from the ground up ("Market Entry," n.d.)
Turned over to a client (Erwin, 2012).
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Disadvantages
Construction risks (Erwin, 2012).
Financial risks ("Market Entry," n.d.)
Piggybacking
Disadvantages
low level of control (Erwin, 2012).
receiving inadequate market feedback (Erwin, 2012).
possible erosion of brand ("Market Entry," n.d.)
Advantages
Reduced risk and cost ("Market Entry," n.d.)
Larger firm is marketing (Erwin, 2012).
Greenfield Investments
Advantages
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Modern new facilities ("Market Entry," n.d.)
Disadvantages
Most costly ("Market Entry," n.d.)
highest risk (Erwin, 2012).
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