Some of the market entry strategies are as follows;
- Reduce price to penetrate an existing market. By introducing a product at a lower price than the pioneer‘s, a latecomer can attract new customers who would not have otherwise purchased such a product in effect expanding the total market.
- Improve a product or service, with focus on a niche market. Companies can compete by being innovative in the marketplace. The innovation may be radical or incremental. One example of incremental innovation is an enhanced version of an. existing product. The enhanced product can compete directly with existing products, or it can be positioned to attract a smaller segment of the existing market.
- Target new geographic markets for existing products. As markets mature in the home base, companies traditionally look outside to more lucrative markets. Most consumer goods companies,, for instance, are setting their sights on China. Many heavy equipment manufacturers are targeting newly emerging markets that will need tractors and cranes for building.
- Develop new channels of distribution to access new markets or better penetrate existing ones. Going global is not the only solution. Sometimes the risk and the investment required to penetrate international markets may not be worth the return. Focusing on existing markets, where your company has a good understanding of the environment, can prove less risky and bring quicker successes.
? Exporting is the most traditional and well established form of operating in foreign markets. Exporting can be defined as the marketing of goods produced in one country into another.
? Piggybacking
-The method means that organisations with little exporting skill may use the services of one that has. Another form is the consolidation of orders by a number of companies in order to take advantage of bulk buying. Normally these would be geographically adjacent or able to be served, say, on an air route.
- Counter trade;
By far the largest indirect method of exporting is counter trade. Competitive intensity means more and more investment in marketing. In this situation the organisation may expand operations by operating in markets where competition is less intense but currency based exchange is not possible. Also, countries may wish to trade in spite of the degree of competition, but currency again is a problem. Counter trade can also be used to stimulate home industries or where raw materials ore in short supply It can, also, give a basis for reciprocal trade.
marto answered the question on February 4, 2019 at 05:52
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