What are the market entry objectives?
1. Psychic distance
Market is considered distant due to psychological barriers
2. Market seeking
Companies that venture into new countries become international because they are looking for new markets, actively seeking customers worldwide
3. Efficiency seeking
Firms want to enter countries/markets where they can achieve efficiency in different ways
4. Resource seeking
Firms try to enter countries to get access to raw materials or other inputs for cost reduction
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International Market Entry Strategies
- What is the establishment chain model?
- What is a wholly-owned subsidiary and what are the benefits of it?
- What are the factors that influence the strength of a company in a particular market?
- Why are strategic alliances popular and why do companies enter into these agreements?
- What are the factors that influence the attractiveness of a country as a market? How can you do the analysis to select a market to enter?
- Why are joint ventures popular?
- How will entry into a developed foreign market differ from entry into a relatively untapped market?