For companies to grow beyond their domestic markets, they have to expand abroad. For this, they need to develop the right market entry strategy to ensure that their products are accepted by customers in foreign countries. The success of a business in a foreign market depends on several factors such as the type of products offered and the ease of access to the target market.
In the past, a lot of time and effort was invested into building international marketing infrastructure. With the advent of technology, however, it is much easier for companies to reach foreign audiences. For instance, businesses can now conduct sales and marketing activities through online platforms such as websites and social media accounts. They can even host virtual meetings through video conferences, allowing them to save money on travel expenses and avoid compromising their productivity.
One of the most common market entry strategies is to export products overseas. In this way, a company can gain an edge over local competitors by offering cheaper prices to customers in foreign markets. This approach also helps to eliminate costs such as manufacturing, packaging, and transportation which can be high in a new country.
Another benefit of this entry mode is that the company can liaise with a local agent for distribution and after-sales support. However, this approach has the disadvantage of having a high dependency on the local partner and having limited control over marketing initiatives in foreign markets.