Having obtained knowledge and understanding of the selected market, the business must now determine the best market entry strategy for the selected market. It may be direct export/distributorship, joint venture/partner, alliance arrangements or via e-Commerce.
It is interesting to note that the most appropriate market entry strategy is often a trade-off between:
- Costs of alternative strategies: Generally speaking, the closer to the consumer, the more expensive the option.
- Control over decision making and your products: The closer to the customer, the better the controls.
- Risk: The more control, the less risk. However, greater control means higher costs, which increases the financial exposure: a different type of risk.
- Price: The...