-
Essay / Market Entry Case Study - 839
Product market entry is an extremely important concept to consider. There are multiple forms of market entry and deciding which form would work best depending on the situation could either benefit or harm the business. Exporting and importing is a form of market entry. This can be done directly or indirectly. The less the company deals directly with foreign companies, the less likely it is to gain knowledge and experience on how to do business abroad. This may limit further expansion. Companies that directly handle products are more likely to obtain more information and gain competitive advantages. This in turn allows for faster expansion, better control and stronger relationships with foreign business partners, thereby driving international growth and success. Disadvantages would be identifying and targeting foreign suppliers and/or customers and finding marketing channels. International intermediaries are a form of exporting and importing when entering the market. Intermediaries have direct and indirect importers and exporters. They can help you with difficult but important details like documentation, financing and transportation. They also help identify foreign suppliers and customers to assist the company in its long-term and short-term market penetration efforts. Intermediaries, as well as export facilitators, can bring the global market to the doorsteps of domestic businesses by helping them overcome financial and time constraints. Export management companies (EMCs) are another form of exporting and importing as part of market entry. These are companies that represent others on a commission basis or work as distributors providing specific international business services. They generally focus on a geographic area where their expertise allows them to offer specialized services. EMCs have two main forms of operation: they provide services as agents or they